Hutchison has confirmed that it has received a so-called “statement of objections” (SO) from antitrust regulators at the European Commission (EC) with regards to its proposed takeover of Orange Austria.
In a press statement Hutchison dismissed…
Hutchison has confirmed that it has received a so-called “statement of objections” (SO) from antitrust regulators at the European Commission (EC) with regards to its proposed takeover of Orange Austria.
In a press statement Hutchison dismissed concerns expressed by the EC, describing worries about anti-competitive effects of a reduction of competitors from four to three mobile operators as “unfounded”.
Hutchison argued that the situation in a small market such as Austria should not be compared to larger markets, such as Germany or Spain.
The company also said that, following the merger, it intends to reach a market share of 30% by 2015, thereby creating a strong challenger for the larger players in the country.
Hong Kong based Hutchison said it will continue to co-operate with the EC investigation and that it remains positive that it will be able to convince the regulator of the pro-competitive effects of the proposed €1.3bn deal.
If a statement of objections is issued by the EC in in-depths antitrust investigations it means that the regulator is inclined to prohibit the transaction if the merging parties do not offer sufficient remedies. The document outlines all those concerns identified by the agency in detail and gives the companies the opportunity to reply to the regulator and to offer additional undertakings.
The Commission has a deadline of 30 November to come to a conclusion.
