Hutchison Whampoa's bid for O2 Ireland is likely to face a lengthy EU antitrust investigation unless Hutchison offers concessions to allay competition concerns, two people familiar with the matter told Reuters. Hutchison Whampoa announced the EUR 780 million offer for Telefonica's Ireland unit in June. The acquisition would quadruple the market share of Hutchison's subsidiary, 3 Ireland, to 37.5 percent, behind market leader Vodafone.
The European Commission, which is now conducting a preliminary review of the deal, expressed concerns to Hutchison officials at a "state-of-play" meeting on 22 October, the report said. The biggest regulatory worry is likely to be a reduction of competition in Ireland, as the deal will cut the number of mobile phone operators from four to three. Hutchison said such meetings were part of the regulatory process. "We will be waiting to see what the Commission will say at the end of the Phase 1 review," a Hutchison spokesman said. Hutchison has until 06 November to offer concessions. Failure to do so will trigger an in-depth investigation that could take up to five months.
