Actionable news
0
All posts from Actionable news
Actionable news in TEF: TELEFONICA S.A.,

EU to Block Hutchison’s Takeover of Telefónica’s O2

The EU’s 28 commissioners are scheduled to approve the decision by the bloc’s antitrust watchdog...

BRUSSELS—The European Commission is set to torpedo CK Hutchison Holdings Ltd. 0001 0.11 % ’s planned deal to buy British mobile operator O2 for around $14 billion, two people familiar with the matter said, as EU regulators take a hardened approach toward telecom consolidation.

European Union commissioners are scheduled to approve the decision by the bloc’s antitrust watchdog on Wednesday, the people said, after the companies failed to assuage regulator’s concerns the deal would lead to higher prices and less choice for U.K. consumers.

The item is on the agenda for the weekly meeting of the 28 EU commissioners, where the decision is usually a formality.

The commission and the companies declined to comment.

The purchase of Telefónica SA’s O2 by Hong Kong-based CK Hutchison would have combined the U.K.’s second-largest mobile operator with Three U.K., the fourth-largest operator and CK Hutchison’s existing British carrier. The acquisition, announced in 2015, would have more than tripled Three’s U.K. subscribers to 34 million and created the country’s biggest mobile operator.

Margrethe Vestager, the EU’s antitrust chief, has taken a tough stance against telecoms mergers in the region, particularly in cases where deals reduce the number of mobile-telecom operators in a given country from four to three, as would be the case in the U.K. deal. The first such deal to be reviewed under...


More