Menu
Hutchison to buy U.K. carrier O2 for up to US$15 billion

Hutchison to buy U.K. carrier O2 for up to US$15 billion

The deal would make Hutchison the biggest mobile player in Britain

Hutchison Whampoa has agreed to acquire U.K. mobile operator O2 for a price that could top US$15 billion, giving a company that already owns one major carrier an even bigger share of the British market.

The deal, which has been in the works at least since January, continues a trend of consolidation among European service providers. Hutchison already owns Three, one of the U.K.'s biggest carriers. Together, Three and O2 would form the country's number one mobile operator by subscribers, according to news reports.

O2 is currently owned by Spanish multinational mobile giant Telefónica. Hutchison agreed to make an initial payment of 9,250 British pounds (about $13.7 billion) when the deal closes and pay another 1 billion pounds when cash flow from the combined company reaches a certain level, Telefónica said. The total price would exceed $15.2 billion, based on Tuesday's exchange rates.

The transaction still needs regulatory approvals. It would cut the number of major mobile operators in the country from four to three.

Hutchison, based in Hong Kong, owns mobile operators under the Three name in several countries across Asia and Europe. It also has interests in property, ports, retail, energy and infrastructure.

The O2 buyout is the second big mobile deal in the U.K. this year. Last month, BT agreed to buy mobile carrier EE from Deutsche Telekom and Orange for about $19 billion.

Stephen Lawson covers mobile, storage and networking technologies for The IDG News Service. Follow Stephen on Twitter at @sdlawsonmedia. Stephen's e-mail address is stephen_lawson@idg.com

Follow Us

Join the New Zealand Reseller News newsletter!

Error: Please check your email address.

Tags business issuestelecommunicationCarriersHutchison Whampoao2mobileMergers and acquisitionsTelefónica

Slideshows

Top 50 defining moments of the New Zealand channel in 2016

Top 50 defining moments of the New Zealand channel in 2016

Reseller News looks back on a tumultuous 12 months for the New Zealand channel, assessing the fallout from a year of sizeable industry change. Whether it be local or global mergers and acquisitions, distribution deals or job changes, the channel that started the year differs somewhat to the one set to finish it - Reseller News assesses the key moments that made 2016.​

Top 50 defining moments of the New Zealand channel in 2016
​Hewlett Packard Enterprise honours high achieving NZ channel

​Hewlett Packard Enterprise honours high achieving NZ channel

Hewlett Packard Enterprise honoured its top performing Kiwi partners at the second running of its HPE Partner Awards in New Zealand, held at a glitzy ceremony in Auckland. Recognising excellence across eight categories - from distributors to resellers - the tech giant celebrated its first year as a standalone company, following its official split from HP in 2015.

​Hewlett Packard Enterprise honours high achieving NZ channel
Nutanix treats channel partners to Christmas cruise

Nutanix treats channel partners to Christmas cruise

Nutanix recently took to the seas for a Christmas Cruise around Sydney Harbour with its Australia and New Zealand staff, customers and partners to celebrate a stellar year for the vendor. With the sun out, they were all smiles and mingled over drinks and food.

Nutanix treats channel partners to Christmas cruise
Show Comments