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EU likely to open probe into Hutchison, Telefonica deal -sources
October 23, 2013 / 2:16 PM / 4 years ago

EU likely to open probe into Hutchison, Telefonica deal -sources

Santiago Fernandez Valbuena, President of Telefonica Latin America, poses as he speaks with journalists at the Reuters Latin America Investment Summit 2013 in Sao Paulo May 21, 2013. REUTERS/Nacho Doce

BRUSSELS (Reuters) - EU antitrust regulators are set to open a lengthy investigation into Hutchison Whampoa’s 0013.HK bid for Telefonica’s Irish unit unless Hutchison offers concessions to sooth competition concerns, two people familiar with the matter said on Wednesday.

Hong Kong-based Hutchison Whampoa, controlled by Asia’s richest man Li Ka Shing, announced the 780-million-euro ($1.07 billion) offer for Telefonica’s 02 Ireland unit in June, its latest deal to build up a presence in Europe.

The European Commission, which is now taking a preliminary look into the deal, expressed concerns about the deal to Hutchison officials at a meeting on Tuesday, the sources said.

“Concerns were expressed at the state of play meeting,” one of the people said.

Hutchison has until November 6 to offer concessions. Failure to do so will trigger an in-depth investigation that could take up to five months.

($1 = 0.7260 euros)

Reporting by Foo Yun Chee; editing by Barbara Lewis

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