O2 close to being purchased by Three U.K. in a $15 billion transaction

O2 close to being purchased by Three U.K. in a $15 billion transaction
Last week, we told you that Hutchison Whampoa, the company that owns Three U.K, was working on a deal to buy Telefonica's O2. Now, it seems as though this transaction is getting closer to becoming a reality. A report published on Thursday cites those close to the deal as saying that it could be announced as soon as tomorrow.

The latest talk has the country's fourth largest carrier purchasing its second largest for the equivalent of $15 billion. If the deal goes through, the combined business would be the largest mobile operator in Britain based on subscribers. The current number one carrier in the nation, EE, is in the process of being purchased by British Telecom for $19.5 billion as the latter seeks to re-enter the wireless market.

Telefonica plans on using the proceeds of a deal to reduce its debt, which currently stands at a whopping $45 billion. Hutchison Whampoa is owned by Hong Kong billionaire Li Ka-shing, the wealthiest man in Asia. The combination of the two carriers will be looked at very closely by regulators worried about antitrust issues. The two carriers combined would have 31 million subscribers.

source: WSJ

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3 Comments

1. BobLawblaw unregistered

Three already bought O2 at home in Ireland.

2. Finalflash

Posts: 4063; Member since: Jul 23, 2013

Can't wait, three already has the best plans, with O2's coverage and 4g network added, it will literally make it the best service in UK. Might want to lock down a 2 year contract now in case they decide to change plans.

3. Cyberthing

Posts: 127; Member since: Nov 18, 2014

Three is one of, if not, the only UK network that doesn't charge you extra for 4G plans. In addition they have unlimited data for a nice price. The future will be intriguing if this is true. I wonder what will happen to GiffGaff.

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