8/2/2016 9:22:15 AM
CK Hutchison sues Euro watchdog over Three/O2 block
Three UK owners CK Hutchison are taking legal action against the European Commission over its decision to block Three’s takeover of O2.
The lawsuit comes several months after the Euro watchdog rejected the £10.25bn purchase on the basis that it would be bad for UK competition. At the time Hutch said that it would look at the possibility of legal action.
The lengthy approval process saw a Hutch make a number of concessions which were rejected by industry figures and UK regulators Ofcom and the Competition and Market’s Authority.
It has been suggested that the EU Referendum result played a part in the European Commission's decision.
Since thenn there has been some uncertainty over the ownership of O2. There has been suggestions of management buyout, sale to private equity firms while a number of O2’s rivals were suggested as potential buyers
Telefonica said at the end of June that O2 was no longer for sale.
Confirming the lawsuit to Mobile Hutch said: ‘CK Hutchison can confirm that it has lodged an appeal to the European General Court against the decision adopted by the European Commission on 11 May 2016 to prohibit CK Hutchison’s acquisition of O2 UK.’