Hutchison has said that its planned EUR1.3 billion acquisition of Orange Austria has become the subject of a full probe by EU regulators, a move that could force it to restructure the deal.

The CEO of the Hong Kong operator group’s local arm, H3G Austria, told Reuters yesterday that it will continue to work with the European Commission to reach a compromise but warned that further concessions could wipe out the benefits of the transaction.

Hutchison plans to acquire 100 percent of Orange Austria from its current owners France Telecom (35 percent) and private-equity firm Mid Europa Partners (65 percent), and merge it with its own local unit.

Approval for the deal is thought to rest on the combined network being open for other players to use. Sources familiar with the matter have told Reuters that Hutchison's offer included signing a memorandum of understanding to open up its network to local cable operator UPC.

The merger between third-placed operator Orange and fourth-placed 3 would create a stronger challenger to Austria’s two largest mobile operators, Telekom Austria’s A1 and T-Mobile – but regulators have expressed concerns about reducing the number of market players from four to three.

The Commission has been examining the takeover since June, seeking input from interested stakeholders. A source confirmed that some respondents were negative on the deal, prompting the Commission to broaden its investigation. It has set a 30 November deadline for its decision.