The UK’s competition watchdog appeared to be displeased by CK Hutchison and Cellnex Telecom’s efforts to ease its concerns over a proposed tower assets deal, taking a step towards a deeper investigation into the potential hazards posed by the move.
In its latest statement on the planned transaction, the Competition and Markets Authority (CMA) argued its move towards a fuller probe into the suggested tower sale was based on CK Hutchison and Cellnex failing to alleviate its concerns the deal could substantially lessen market competition.
It earlier issued guidelines explaining an in-depth investigation usually spans 24 weeks, with an option for another eight weeks’ extension. The aim is to issue remedies required for the resolution of any competition risks found. Those might include a ban of the merger or demand for divestitures of some parts of the business.
After initiating a probe in April, in mid-July the UK regulator gave the pair five days to address its concerns over the deal, which suggest Cellnex would acquire passive infrastructure from CK Hutchison currently used by operator 3 UK.Subscribe to our daily newsletter Back