Hutchison Whampoa, the parent company of UK mobile operator Three, has today confirmed that its purchase of rival UK network O2 will proceed, subject to final approvals.
In January, the operator confirmed that it had been in talks to take over the O2 brand in the UK in a deal valued at £10.5 billion ($15.7 billion). According to the Wall Street Journal today, the value of the sale is actually £9.25 billion (around $13.8 billion). Hutchison could also have to pay up to one billion pounds more if O2 meets its targets.
Exactly what impact this will have on customers of either network in the UK is currently unknown, but we’d expect both brands to continue for the foreseeable future. It also transforms the UK smaller of the big name operators into a considerably larger entity, while freeing up Telefonica to focus its efforts elsewhere beyond the UK.
➤ Telefónica Agrees to Sell O2 for $13.84 Billion [The Wall Street Journal]