Hutchison offers EC concessions on UK mobile merger deal

© Reuters. Women use their mobile phones outside an O2 shop in Loughborough

By Foo Yun Chee

BRUSSELS (Reuters) - CK Hutchison Holdings Ltd (HK:0001) has offered concessions to address the EU competition regulator's concerns over its proposed 10.3 billion-pound deal to merge its UK mobile network operator Three with Telefonica's (MC:TEF) O2 UK.

Hutchison, owned by Asia's richest man Li Ka-shing, is keen to get the deal done as it continues its expansion in Europe, with the acquisition of O2 set to make it the UK's biggest mobile network operator which would compete with just two rival network operators, BT's newly-acquired EE, and Vodafone (L:VOD).

The company submitted its offer on Wednesday, according to a filing on the European Commission website. The EU competition regulator, which did not provide details, in line with normal policy, extended the deadline for its decision to May 19 from April 22.

Hutchison said the deal would not hurt competition in the UK.

"We continue to work closely with the Commission to ensure effective competition in the UK mobile market," the company said in a statement.

Earlier this month, Hutchison offered to freeze mobile call and text messaging rates in the five years after the merger, invest 5 billion pounds in businesses in Britain over the same period and sell off some of its network capacity.

It said that offer would be part of a package of proposals to be submitted to the EU regulator. The company will make its case to senior Commission officials, national competition agencies and rivals at a closed hearing on Monday.