EU: Senior Officials reject Hutchison bid for Telefónica’s O2

Senior European Union officials on Wednesday decided to block CK Hutchison Holding’s multibillion-dollar purchase of Telefónica’s British mobile operator O2, reported the Wall Street Journal.

The decision will pave the way for a formal signoff on the decision by the bloc’s 28 commissioners expected next week, the people said.

Senior technical experts meet to hash out final points of contention among the commission’s various departments before final approval is sought. Once there is a consensus at this level, it is rare for commissioners to overturn it.

The EU has until May 19 to make a final decision on the deal.

The companies had offered commitments to help waive the deal through, but ultimately the remedies couldn’t mollify the EU antitrust regulator’s concerns the merger would lead to higher prices and less choice for UK consumers.

The imminent EU decision represents a tougher attitude by EU regulators toward consolidation among telecom companies in the region, particularly in cases in which the number of operators in a given country shrinks from four to three, as would have been the case with CK Hutchison’s UK deal.

The deal would have joined Hong Kong-based CK Hutchison’s Three U.K., the country’s fourth-largest operator, with Telefónica SA’s O2, the UK’s second-largest mobile operator.

Full Content: The Wall Street Journal

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