Three offers ‘effective’ remedies to ease fears

Mobile communications company, Three Ireland has promised to offer “strong and effective remedies” to address European Commission concerns into its proposed takeover of rival network provider, O2 Ireland, ahead of a formal ruling on the deal at the end of April.

The network provider confirmed yesterday that it had received a Statement of Objections — setting out third-party concerns — from the EC, but said it remains confident of the takeover going ahead.

Three — which is owned by Hong-Kong-based conglomerate, Hutchison Whampoa — entered the Irish market in 2005 and has since become the country’s fastest growing telecommunications player.

Last June it announced it had reached agreement to buy O2 Ireland — from its Spanish owner, Telefonica — in an €850m deal that would make the enlarged company the second largest player in Ireland, behind Vodafone. The new company would have a near 40% share of the Irish market and combined revenues of over €800m.

The EC’s statement of objections are not made public and are addressed to concerned companies only. The commission opened its investigation into the deal in early November and has until April 24 to make a decision.

Things like the amount of spectrum/ bandwidth the enlarged entity will have, altered competition levels, whether new entrants to the market can use Three’s network and whether the new company will maintain O2’s network sharing partnership with Eircom (Three has one in place with Vodafone) are thought to have been raised with Brussels.