Telecom network O2 is all set to be sold by its current owner Telephonica to Hutchison Whampoa for an agreed sum of $15.2 billion.
Hutchison Whampoa already owns the ‘Three’ mobile network and with the acquisition of O2, the merger can create the largest telecom operator in U.K. The deal has been laid out as Hutchinson pays approx $13.7 billion on signing and the remaining $1.5 billion later, based on the cash flow.
According to an article by BBC, Hutchison Group’s Managing Director, Canning Fok described the deal as a “major milestone”. “The combination of Three UK and O2 UK will create a business with unmatched scale and strength that will allow us to better compete against other operators in the marketplace,” Fok said.
The merger off O2 and Three mobile network would conquer majority market share with over 33 million users surpassing that of EE at 26 million and Vodafone at 19.5 million respectively.