Hutchison’s acquisition of O2 may be given go-ahead next week

Hong Kong-based Hutchison Whampoa is poised to win regulatory approval to take over O2 Ireland as soon as next next after a key EU panel backed the deal, according to Bloomberg.

Hutchison has agreed to pay €850 million to Spanish telco Telefonica for its O2 Ireland subsidiary. The company intends to merge O2 with its 3 Ireland mobile subsidiary.

The acquisition will make Hutchison the second biggest mobile operator in Ireland, behind Vodafone.

Officials from the EU’s national competition authorities met this week and gave their support to the European Commission’s plans to approve the deal, sources said.

The decision, which is not binding, paves the way for the European Commission to grant final approval at its next meeting on Wednesday.

Liberty Global’s UPC unit is poised to provide mobile phone services in Ireland, taking up Hutchison’s offer of network access that sought to allay EU regulatory concerns.

Hutchison’s concessions are designed to overcome EU objections to the combination of two of Ireland’s four mobile operators.

Telefonica, which owns O2, has a separate plan to merge its German unit with Royal KPN NV’s E-Plus in another tie-up that is testing how far regulators are willing to allow consolidation in the telecommunications industry.

Joaquin Almunia, the EU’s antitrust chief, has said such deals cannot come at the expense of higher prices for consumers.

Hutchison and O2 Ireland declined to comment, as did a spokesman for the European Commission.