New | Li Ka-shing’s conglomerate agrees to HK$118 billion takeover of Britain's O2 mobile network

Hutchison Whampoa, the flagship conglomerate of billionaire industrialist Li Ka-shing, has agreed to buy the British mobile network operator O2 from Spain’s Telefonica for £10.25 billion (HK$118.29 billion or US$15 billion).

The blockbuster deal represents Li’s biggest overseas acquisition, surpassing the £5.77 billion paid by Cheung Kong Infrastructure to take over UK Power Networks in October 2010.

The acquisition of O2, which is subject to the European Union competition authority’s approval, will create the biggest mobile network operator in Britain, with almost 33 million customers as it combines the subscribers of Hutchison’s Three UK subsidiary.

Hutchison managing director Canning Fok Kin-ning expected the deal to be completed, with all regulatory approvals, by next year.

“The combination of Three UK and O2 UK will create a business with unmatched scale and strength that will allow us to better compete against other operators in the marketplace,” Fok said.

“This very significant investment for Hutchison also reflects our continued confidence in the UK economy and its commitment to maintain and foster a dynamic telecommunications sector.”