Spanish firm cleared to buy O2

EU regulators today cleared Spanish telecommunications powerhouse Telefonica SA to take over Britain’s O2 PLC after Telefonica agreed to quit an international roaming alliance.

The European Commission said it was concerned that the deal would damage competition in the market for international roaming services, which allow customers use their phone on another network abroad.

So Telefonica said it would leave the FreeMove alliance to win EU clearance for its €26.3m bid for O2.