Arab Today, arab today telefonica sells o2 to hutchison whampoa for £10bn
Last Updated : GMT 08:39:57
Arab Today, arab today
Arab Today, arab today

Telefonica sells O2 to Hutchison Whampoa for £10bn

Arab Today, arab today

Arab Today, arab today Telefonica sells O2 to Hutchison Whampoa for £10bn

Spain's Telefonica
Madrid - AFP

Spain's Telefonica said it would sell British telecom giant O2 to Hong Kong group Hutchison Whampoa for £10.25 billion in a deal that could create Britain's biggest mobile phone firm.
"A definitive agreement has been reached after the finalisation of the process of due diligence on O2 UK," the Spanish firm said in a statement, adding the deal was worth the equivalent of 14 billion euros ($15.2 billion).
Subject to regulatory approval, Hutchison Whampoa will make an initial payment of £9.250 billion and a further £1.0 billion later once O2 reaches an agreed cash flow level, it said.
It hopes to wrap up the deal by June 30, 2016 -- a deadline that may be pushed back to September 30, 2016 in certain circumstances.
It is the latest purchase in a spending spree by Hutchison's owner, Hong Kong investment tycoon Li Ka-shing, one of Asia's richest men.
Li, 86, who is worth $30.6 billion according to Bloomberg's Billionaires Index, announced a sweeping re-arrangement of his business empire in January.
Hutchison already owns Britain's Three mobile phone network -- if he merged O2 with that company, he would reduce to three the number of players in Britain's fast-consolidating wireless telecoms sector.
A statement from Hutchison said the agreement to buy O2 "will create the number one mobile operator in the UK".
Hutchison's group 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.
But some analysts have warned that a merger could lead to price hikes, owing to less competition.
Hutchison could "drive a lot of synergies" with the takeover, James Britton, a London-based analyst at Nomura Holdings Inc, was quoted as saying by Bloomberg News.
"Whether that really equips them to be fully competitive in a converged UK market remains to be seen."
- Telecom sector shake-up -
It was the latest in a series of shake-ups in Britain's telecom sector.
British telecoms and TV firm BT had said in November that it was in preliminary talks to buy back O2 -- its former domestic mobile phone division -- from Telefonica.
Instead BT ended up buying another British mobile phone operator, EE, for £12.5 billion.
British telecom giant Vodafone took over Spanish cable firm Ono on July 24 for 7.2 billion euros.
Telefonica, with operations across Europe and Latin America, is meanwhile looking to turn around its fortunes.
It reported a 35-percent plunge in net profits to 3.0 billion euros in 2014. Its debt stood at 45 billion euros at the end of 2014.
It said last month it plans to step up its value-added activities such as fibre optic cable, pay TV and smartphones, and to focus on its main markets in Spain, Germany and Brazil.
The Spanish group wants to pull out of the British market where it has been present since 2005, when it bought O2 for 26 billion euros.
Telefonica has already sold its operations in the Czech Republic and Ireland.
Hutchison's revamp is expected to pave the way for Li's retirement and follows speculation of a handover to his son Victor.
Li's shift away from a slowing Chinese economy to bargain hunt in Europe is seen as a further quest for stability for his vast empire.
Fok said the deal to buy O2 "reflects our continued confidence in the UK economy".
Hong Kong-based independent financial analyst Francis Lun said investors would be happy with the move.
"They (Hutchison) will have much better economies of scale -- they will be able to improve their profitability for the mobile and telephone sector."

 

arabstoday
arabstoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today telefonica sells o2 to hutchison whampoa for £10bn Arab Today, arab today telefonica sells o2 to hutchison whampoa for £10bn

 



Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today telefonica sells o2 to hutchison whampoa for £10bn Arab Today, arab today telefonica sells o2 to hutchison whampoa for £10bn

 



Arab Today, arab today
Arab Today, arab today Youssra depended on colored foam

GMT 16:53 2017 Tuesday ,05 September

Youssra depended on colored foam
Arab Today, arab today Ryanair's O'Leary: Could ground more planes

GMT 06:49 2017 Friday ,22 September

Ryanair's O'Leary: Could ground more planes
Arab Today, arab today Etiquette expert underlines importance of gifts

GMT 17:52 2017 Sunday ,03 September

Etiquette expert underlines importance of gifts
Arab Today, arab today Huthis stage defiant rally 3 years

GMT 05:29 2017 Friday ,22 September

Huthis stage defiant rally 3 years
Arab Today, arab today Saudi Arabia to unblock internet calling apps

GMT 11:31 2017 Wednesday ,20 September

Saudi Arabia to unblock internet calling apps
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Ministry seeks to improve education

GMT 14:49 2017 Sunday ,17 September

Ministry seeks to improve education
Arab Today, arab today China lifts 10-year travel ban

GMT 18:09 2017 Thursday ,21 September

China lifts 10-year travel ban
Arab Today, arab today Puerto Rico, Virgin Islands brace

GMT 12:01 2017 Wednesday ,20 September

Puerto Rico, Virgin Islands brace
Arab Today, arab today The history of solar eclipses

GMT 05:16 2017 Sunday ,20 August

The history of solar eclipses
Arab Today, arab today Mercedes pumps 1 bln euros    

GMT 06:04 2017 Friday ,22 September

Mercedes pumps 1 bln euros    
Arab Today, arab today Intel chips loaded in Waymo

GMT 14:43 2017 Wednesday ,20 September

Intel chips loaded in Waymo
Arab Today, arab today Actress Ream Hhagag prepares for a new film

GMT 09:40 2017 Tuesday ,19 September

Actress Ream Hhagag prepares for a new film
Arab Today, arab today France hopeful of persuading Trump

GMT 06:21 2017 Wednesday ,20 September

France hopeful of persuading Trump

GMT 12:14 2017 Monday ,18 September

Horia Farghaly happy for success of “Case G”

GMT 10:35 2017 Thursday ,14 September

New Zealand opposition looks

GMT 16:53 2017 Saturday ,02 September

Mai importance of gifts during Eid Al-Adha

GMT 19:18 2017 Monday ,18 September

5,000 'Dieselgate' deaths in Europe per year

GMT 10:46 2017 Saturday ,05 August

Nanis reveals simple ideas for home renovation

GMT 18:03 2017 Thursday ,21 September

Alarm over flesh-eating ulcer cases

GMT 07:00 2017 Wednesday ,20 September

A no-frills business success

GMT 17:12 2017 Monday ,07 August

Al-Shawaifi reveals secrets of total solar eclipse

GMT 12:46 2017 Thursday ,21 September

Google likely to buy stake in Taiwan smartphone maker HTC

GMT 11:37 2017 Saturday ,12 August

Fashion designer reveals her new collection
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday