Hutchison buys Telefonica's O2 Irish mobile business for €780m

Hutchison Whampoa, the flagship conglomerate of Li Ka-shing, is poised to become Ireland's leading mobile network operator with its purchase of Spanish group Telefonica's O2 business for €780 million (HK$7.9 billion).

The deal forged by Three Ireland, a Hutchison subsidiary, includes an additional deferred payment of €70 million if certain stipulated financial targets are met.

By acquiring O2 Ireland, Three's market share in the country will reach 37.5 per cent and bring its total subscribers to two million. The transaction is subject to regulatory approval.

Robert Finnegan, the chief executive at Three Ireland, said the deal represents "a major vote of confidence in the Irish market" and positioned the operator as the No1 player in the country.

Three, which entered Ireland in 2005, has invested more than €800 million to build its 3G mobile network in the country, where it is the third-largest player behind Vodafone Ireland and O2 Ireland.

The combined revenue of Three and O2 Ireland reached €803 million last year. Three currently runs 50 retail shops, while O2 Ireland has more than 70 stores in the market.