Watchdog to look at o2 merger

[Anonymous]

the competition authority is considering weighing into Hutchison Whampoa’s bid for Telefonica’s mobile unit O2 UK, a deal that would cut the number of network operators to three and which was submitted for approval by the European Union’s competition regulator last week.

I came across this while looking through for something else & I thought it might interest some of you

the article was posted recently in an online newspaper 

http://www.yorkshirepost.co.uk/business/business-news/watchdog-may-take-look-at-bid-for-o2-1-7465196...

[Bambino]

It's a matter of course that they would do this. They're also looking into the BT takeover of EE. If they allow that, they will have to allow the Three takeover. There's too much at stake for them not to, and they can't allow one and not the other.

[jonsie]

I'm sure this is just the norm for these things. I'm 99% certain this will go through but why, why has it taken this long for them to look at it?

[Cleoriff]

That was my first thought. Why so late in the day?.

I hope it has limited impact on the timing of the takeover...though I suspect it probably wont make the slightest difference...

[jonsie]

These watchdogs are all bluster and no teeth.....pussy cats!

[ewanrw]

Actually they can allow one and not the other, or add stipulations such as having to sell off spectrum.

Also, the EC have recently warned that they would prefer Britain to keep four major networks as reducing to three will, in their opinion, reduce competition, where as the networks are saying reducing to three via mergers will allow for better coverage, quicker introduction of new technologies, and ultimately cheaper pricing, while citing the fact that Ireland has been allowed to reduce the number networks, but obviously the UK has a considerably larger population.

Anyway, it probably will go thru' after the brown envelopes have been given out.

EDIT: The EC knocked back a merger for two networks in Denmark last week as it would reduce the number of networks from 4 to 3.

Looks like some work to do.

ewan

[jonsie]

Untraceable used notes....way to go 

[Bambino]

If they were going to allow one and not the other, I would think that it would be the BT/EE takeover. BT has enough of the market, i.e. landlines, broadband, and TV. I personally think they will allow both anyway, and this announcement that they're 'looking' is a storm in a teacup.

[ewanrw]

Sure we'll find out sometime in the next 51 weeks.

ewan

[Bambino]

The takeovers of both networks are long on the way. Six months at the latest, is my guess.