The UK telecoms industry has recently been turned on its head, fuelled by acquisitions and take-overs. First there were rumours that BT was to spend big on O2, plans which BT then abandoned by buying EE’s mobile business for £12.5bn.
The latest announcement, however, does not concern BT as Telefónica and Hutchison Whampoa look to have entered into exclusive negotiations in the sale of Telefónica UK.
In a reported £10bn deal, the acquisition of Telefónica UK by Hutchison Whampoa would launch Hutchinson from the smallest operator in Britain, to its largest.
Hutchinson’s mobile network Three would see its customer base grow from 7.5m to over 31.5m. The move would also signal the fall in the number of mobile network owners in the UK, from four to three.
The deal would also been see Hutchinson owner Li Ka-shing become one of Britain’s biggest foreign investors. Reputed to be worth $32bn, the Hong-Kong based tycoon already owns Superdrug, Northumbrian Water, Felixstowe and Harwich ports.
O2 released a small statement on its website, saying: "3 is known for campaigning on behalf of its customers, much like O2."
"We are confident that an agreement will mutually benefit the customers of both companies, as well as drive better value, quality and investment in one of the most digitally competitive countries in the world."
Hutchison Whampoa has yet to comment, with both companies expected to make further announcements later today.
