Three overturns the veto on its planned merger with O2. Five reasons why it’s not a hollow victory
A fascinating turn of events has occurred that should get every operator in Europe thinking about its future plans, and the plans of rivals. Last week CKH, the owners of Three UK, successfully overturned the EU Competition Commission’s veto of its proposed 2016 merger with O2. We can only speculate that behind Three’s appeal there was a plan to win a reversal and try again. But bringing over Robert Finnegan and Elaine Carey from Ireland, both veterans of the Three O2 merger there, strongly hints that this was the plan. But it’s irrelevant now that O2 has moved on to strike a deal with Virgin Mobile. Right? A hollow victory if ever there was one. Wrong. It’s worth opening the bonnet on this as it might not be as meets the eye. Here are five reasons why I think it could turn out to be a positive move for the European telecoms market AND for CKH and Three. Even though the political context has changed significantly, Three has not really changed its market position so growth by acquisition could still be its plan. The new ruling should make it easier to gain approval for any subsequent acquisitions or mergers ...
