As expected, the U.K.’s competition watchdog has asked the European Commission for the right to examine 3UK parent CK Hutchison’s proposed acquisition of O2 UK.
In a statement late last week, the Competition and Markets Authority (CMA) said that it is appropriate for Brussels to refer the case to the CMA because the transaction’s impact is likely to only affect U.K. consumers.
CK Hutchison agreed to acquire Telefonica’s O2 unit in the U.K. in March for £10.25 billion and submitted the proposed deal to the European Commission for examination last month. The Commission’s competition department has set a provisional deadline of 16 October to make a ruling on the case.
In September, the CMA invited comments on the proposed merger’s potential impact on competition in the U.K. and on whether it would be appropriate for Brussels to refer the case to the CMA for investigation.
"The [CMA’s] initial view, following consultation and preliminary analysis, is that the transaction threatens to affect significantly competition in the U.K. retail mobile and wholesale mobile markets," the watchdog said.
"Any impact on competition resulting from the merger will likely be limited to U.K. consumers," the CMA noted, adding that it makes sense for the CMA to look into it because of its ongoing investigation into BT’s proposed acquisition of EE.
"Given the clear links between these two cases it would be more efficient to also examine the merger between 3 and O2, in particular to avoid duplication and fragmentation," the CMA said.
The CMA said the European Commission must decide whether to refer the case by 30 October.
