TEF Telefonica SA

By Tom Fairless 

BRUSSELS--Europe's top antitrust regulator has extended by a month its deadline for reviewing Telefonica SA's $14 billion sale of British cellphone operator O2, a week after opening a full-blown investigation into the deal.

The move by the European Commission is common in complex mergers, and aims to give the parties more time to convince regulators that the deal is unproblematic, or discuss potential remedies, such as asset sales.

In a statement published on its website, the commission said it had extended the deadline for the review by 20 working days, to April 18, 2016. The regulator has until that date to investigate the proposed acquisition and to decide whether to approve it, or ask the companies for concessions to ease its concerns. If it fails to reach an agreement on how to bring the acquisition in line with EU competition rules, the commission can also decide to block the merger.

The commission opened an in-depth investigation last Friday, warning that the sale of O2 to Hong Kong tycoon Li Ka-shing's CK Hutchison Holdings Ltd. would create the largest mobile-network operator in the U.K., potentially removing an important competitor.

Britain's telecom regulator Ofcom also expressed misgivings about the merger, warning in a statement that it could lead to higher prices and reduced customer choice.

Natalia Drozdiak contributed to this article.

Write to Tom Fairless at tom.fairless@wsj.com

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(END) Dow Jones Newswires

November 06, 2015 10:23 ET (15:23 GMT)

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