Li Ka-Shing plans to 93.4 billion acquisition of United Kingdom operators O2
On January 23, according to United Kingdom media, United Kingdom mobile operator 3 ‘s parent company Hutchison Whampoa will be 10 billion pounds (about 93.4 billion yuan) in cash from Spain buy O2 Telecom., the Daily Telegraph has learnt that both sides hammered out final details on a Thursday night, and will announce the deal on Friday morning.
3 and O2 will be the United Kingdom’s largest mobile operator, has more than 32 million customers, more than 28 million and Vodafone of EE 20 million. While the deal would also allow United Kingdom network was reduced from 4 to 3, and risk of antitrust investigations. United Kingdom industry regulator Ofcom after the 2010 t-mobile and Orange merger EE consistently has opposed the takeover.
However, European antitrust authorities have recently given conditional approval to Austria, and Ireland and Germany‘s merger agreement, allowing only 3 networks in these countries. Last November, has reportedly owned by Hong Kong tycoon Li Ka-shing, Hutchison wants to United Kingdom looking for mergers and acquisitions. In addition United Kingdom telecommunications confirmed in Spain and EE owners negotiate mergers and acquisitions of telecommunications.
December United Kingdom telecommunications entered exclusive negotiations with EE owner, plans $ 12.5 billion pound takeover EE. Spain telecommunications are widely thought to be seeking to rapidly withdraw from O2, because the company needs to reduce debt and in Latin America to expand. O2 is considered inadequate investment and share at least in the 4G spectrum auction. When there is more speculation when merger talks this week, Macquarie analysts said the merger was “very reasonable”.
This may create enough customers to make the band more operators on the grounds of, and there are plenty of bands to meet the growing demand for mobile Internet access. 2003 Hutchison auction purchased some 3G bands, began his career in United Kingdom market. As it is difficult to grow in size and play a role in challenging brand, not the local companies, the Hong Kong giant continued pouring funds into 3 companies.
Macquarie suggested that mergers may “significantly improve the United Kingdom market, and benefit the EE and Vodafone.” in order to protect other consumers in the integration of the European mobile market regulators limiting conditions are attached, such as guaranteeing a “virtual” operators are buying large quantities of network access, and then to sell their brand to the customer. In the United Kingdom and TalkTalk Tesco Mobile virtual operators. BSkyB is in talks with Vodafone and O2 to discuss buying wholesale network agreement and, therefore, will benefit.
As regards antitrust hurdles, Hutchison Whampoa will find 2 network sharing agreement method of decomposition, O2 and 3 companies signed an agreement with Vodafone and EE. The complexity of this matter, Chief Executive of O2 luonan·Tangen (Ronan Dunne) in November last year, said he considered all possible scenarios, that merged with 3 companies least likely. In this regard, Spain telecommunications and Hutchison Whampoa declined to comment.