Monday, 18 December 2017

Hutchison enters exclusive talks to acquire O2 for £10.25bn

By Nick Wood, Total Telecom
Friday 23 January 15

Deal set to create U.K.'s largest mobile operator but will likely face intense regulatory scrutiny before it can proceed.

Hutchison Whampoa on Friday entered exclusive talks with Telefonica over a £10.25 billion deal to acquire O2 in the U.K. and merge it with 3UK, creating the country's largest mobile operator by subscribers. The proposed transaction will see Hong Kong-based Hutchison pay Telefonica £9.25 billion upfront, and a further £1 billion once the cumulative cash flow of the combined company reaches an agreed threshold. The negotiations are expected to last several weeks, and any resulting transaction will no doubt attract intense regulatory scrutiny. If the deal goes ahead, it will create a mobile operator with around 32 million subscribers &ndash…

Hutchison Whampoa on Friday entered exclusive talks with Telefonica over a £10.25 billion deal to acquire O2 in the U.K. and merge it with 3UK, creating the country's largest mobile operator by subscribers. The proposed transaction will see Hong Kong-based Hutchison pay Telefonica £9.25 billion upfront, and a further £1 billion once the cumulative cash flow of the combined company reaches an agreed threshold. The negotiations are expected to last several weeks, and any resulting transaction will no doubt attract intense regulatory scrutiny. If the deal goes ahead, it will create a mobile operator with around 32 million subscribers &ndash…

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