EU regulators open full probe into Hutchison, O2 deal

BRUSSELS, Oct (HKSE: 3366-OL.HK - news) 30 (Reuters) - European Union antitrust regulators launched a full in-depth investigation into Hutchison (HKSE: 0013-OL.HK - news) Whampoa's 10.3-billion-pound ($15.8 billion) bid for British mobile operator O2 on Friday, concerned that the deal may push up prices.

The deal would make Li Ka-shing's Hutchison, which operates the Three Mobile network in Britain, the top mobile operator in the country.

It (Other OTC: ITGL - news) would also reduce the number of network operators from four to three, a number which typically raises regulatory alarm bells. O2 is owned by Telefonica (Amsterdam: TA6.AS - news) .

"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 European Commission said in a statement.

The European Commission said it had 90 working days until March 16, 2016 to take a decision on the matter.

($1 = 0.6518 pounds) (Reporting by Foo Yun Chee and Robert-Jan Bartunek; editing by Philip Blenkinsop)