High stakes for Hutchison: EU regulators investigating Hong Kong-based company's £10.3 billion bid for British mobile operator O2

EU antitrust regulators have launched a full investigation into Hutchison Whampoa’s 10.3-billion-pound (HK$123.06 billion) bid for British mobile operator O2, concerned that the deal may push up prices.

The European Commission has signalled a tougher line on telecoms mergers, putting it on a collision course with the companies who argue they need to consolidate to invest in faster networks.

Hutchison completes buyout of British mobile carrier O2 for £10.25 billion

Hutchison’s planned acquisition of Telefonica’s O2 would make it the top mobile operator in Britain. It already has a UK mobile business, Three, so the deal would reduce the number of network operators from four to three, a number which typically raises regulatory alarm bells.

"The Commission has concerns that the transaction would remove an important competitive force and that the merged entity would have limited incentives to exercise significant competitive pressure on the remaining competitors," the Commission said on Friday.

The stakes are high for Hutchison, owned by Li Ka-shing. Failure to get EU approval for the deal could put a brake on its expansion and long-term prospects in Europe, credit rating agency Moody’s wrote in a note last month.