We heard rumours that Huchison Wampoa would be acquiring the UK mobile operator O2 earlier this week, and now we have a confirmation of current talks with O2 and Hutchison.

The confirmation comes from a report that was posted by TechCrunch earlier today.

Within the report TechCrunch not only confirm that Telefonica (O2’s parent company) and Hutchison are in talks, but they also revealed the supposed bid.

According to the site, Hutchison is looking to acquire O2 from Telefonica for a total of £10.25 billion, this would be broken down into an initial payment of £9.25, and a second £1 billion payment in deferred interest sharing payments.

Telefonica first acquired O2 from BT back in 2005, for which it paid a total of £18 billion for the network. This may look as though they are bing shortchanged, however that deal included the mobile networks operations in Germany and Ireland, these would not be a part of the Hutchinson deal.

Hutchison Wampoa also currently owns another major mobile network in the UK, Three

If the deal does go through (subject to approval by Ofcom), it would mean that if combined with Three, O2 could become the largest mobile network in the UK, with EE currently at the top spot with their 32 percent share of the market.

The merging of O2 and Three would result in a 42 percent share of the UK mobile phone market.

You can find out more details about the deal at the link below.

Source: TechCrunch

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