CK Hutchison launches legal challenge over EC's decision to block O2 UK acquisition

1 Aug 2016

Hong Kong-based CK Hutchison, owner of British mobile network operator Three UK, is reportedly launching a formal legal challenge to the EU’s decision to block its proposed purchase of rival cellco O2 UK. According to The Telegraph, citing industry sources, proceedings against the European Commission (EC) have been issued at the European Court of Justice, while a CK Hutchison spokesman confirmed the development, saying: ‘CK Hutchison can confirm that it has lodged an appeal to the European General Court against the decision adopted by the European Commission on 11 May 2016 to prohibit CK Hutchison’s acquisition of O2 UK.’ While it has been suggested that a court victory would be unlikely to revive the tie-up between Three UK and O2 UK, the report notes that the former’s parent company could seek compensation, while it may also look to set a precedent relating to consolidation in Europe, given that it is currently in the middle of another planned acquisition in Italy.

United Kingdom, CK Hutchison, Hutchison 3G UK (Three UK), O2 UK