Three welcomes EU approval of O2 acquisition

Dublin 28th May 2014:  Three today welcomed the decision of the European Commission to approve the acquisition of the Telefónica O2 business in Ireland, which will take Three’s market share to 37% and bring subscriber numbers to over 2m active users. The two companies had combined revenues of €736m in 2013, which compares to Three’s revenue of €180m in 2013 on a standalone basis.

“With the combined strengths of the two businesses, Three will have the scale and financial strength necessary to compete more aggressively against the number one in the market. Our ability to invest coupled with the combined subscriber base of both businesses will create new competitive dynamics in the Irish telecoms market”, said Robert Finnegan, CEO Three. “It leaves Three optimally positioned to become the number one player by providing the best value and service to our customers.”

“Increasing access to high-quality high-speed networks for Irish businesses and consumers is an essential part of Ireland’s national economic recovery. This deal will enable Three to invest significantly in building a state-of-the-art 4G network, delivering very real benefits to customers in urban and rural areas throughout the country” Finnegan added.

“Our focus will now turn to the legal requirements to complete the acquisition which we expect to do shortly.  Until then it is business as usual for Three and O2 customers”, continued Finnegan. 

HWL, Three’s parent company, has so far invested over €1.1bn in the Three Irish business. This, together with the purchase of O2 Ireland and the planned investment of €300m to build a 4G network over the next three years, will bring HWL’s total investment in Ireland to circa €2bn. This investment shows HWL has great confidence in the future of the Irish market and the Irish economy.

As part of the EU approval process, Three has committed to provide network capacity and MVNO services to two MVNOs in order to facilitate new MVNO entry into Ireland with the option to acquire spectrum that may be taken up by one or the other to become a network operator. Three has also committed to offer to Eircom Meteor to continue its network sharing with O2 on improved terms with the merged network.


For further information please contact:

Pat Walsh: 083 182 6607
Mark Brennock: 083 458 6195
Joanna Kavanagh: 083 403 2173
Aoibheann O’Sullivan: 083 456 4759


Notes to editors:

1. Three announced in June 2013 that it had entered into an agreement with Telefónica to buy its O2 business in Ireland for €780m. A further additional deferred payment of €70m is payable dependent upon achievement of agreed financial targets.
2. The acquisition of O2 will take Three's market share to 37% and bring subscriber numbers to over 2m active users. The two companies had combined revenues of €736m in 2013, which compares to Three's revenue of €180m in 2013 on a standalone basis

A bit about Hutchison Whampoa

• Three is 100% indirectly owned by Hutchison Whampoa Limited (HWL), a multinational conglomerate committed to innovation and technology. Its diverse businesses employ over 260,000 people in 52 countries worldwide.
• HWL’s operations range from some of the world's biggest port operators and retailers, to property development and infrastructure, to innovative telecommunications and data services.
• HWL is a leading global operator of mobile telecommunications and data services and a major owner and operator of fibre-optic fixed-line networks in Hong Kong.

About Three Ireland

• Three is part of HWL’s 3 Group Europe which operates 3G services in Ireland, UK, Austria, Denmark, Italy and Sweden. 3 Group Europe has over 22 million customers.
• Three has invested over €1.1 billion in building its Irish network to date.
• Three was the first to launch mobile broadband in Ireland and is now the mobile broadband leader.
• Three has 99.5% population coverage for voice and text and 97% for mobile broadband.
• Three has over 45 “3Stores” in Ireland.

About O2 Ireland

• O2 is the commercial brand of Telefónica Ireland in the Irish marketplace with over 1.5 million customers.
• O2 operates 2G and 3G networks in Ireland, and has secured the spectrum required to roll out a nationwide 4G network. 
• O2 employs approx. 850 people and has a retail network of almost 70 stores nationwide.