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UK: Telefónica’s O2 seeks to end talks with Three

By  |  May 30, 2016

Telefónica is seeking to move on from the blocked merger of its UK business with CK Hutchison’s Three as the Spanish telecoms company plots a future sale or flotation of O2.

Telefónica and Hutchison had agreed an exclusivity deal that would have kept them talking about the deal until the end of June. But now that Brussels regulators have rejected the deal, Telefónica wants to end the talks earlier.

The move, which could be agreed by the two sides as early as this week, represents the end of a £10.5bn agreement struck more than a year ago that aimed to create the UK’s largest mobile group.

A merger between Three and O2 was blocked by Europe’s antitrust regulator in May given concerns about the impact on pricing and infrastructure in the UK. If the exclusivity agreement is ended, Telefónica will be free to consider the next step for its British business.

Full Content: Financial Times

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