The European Commission blocked the bid of Li Ka-Shing-led CK Hutchinson Group to take over British mobile network operator O2.

The proposed £10.25 billion (HK$115.14 billion) acquisition of Hutchison subsidiary Three UK was foiled after EC aired its concerns that UK phone customers would have less options and pay higher should the deal is sealed.

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Hutchison and Telefonica UK hatched a deal in 2015 to sell O2 to Hutchsinson. This was expected to boost Three UK's users to 33 million customers to make it the largest mobile network operator in UK with over 40 per cent market share.

This would have also gave Li Ka-Shing his biggest overseas acquisition, overtaking Cheung Kong Infrastructure's  £5.77 billion purchase of UK Power Networks in October 2010.

Hutchison will carefully study the commission's decision and explore other options, "including the possibility of a legal challenge".

"We strongly believe that the merger would have brought major benefits to the UK ... by addressing the country's coverage issues, enhancing network capacity, speeds and price competition for consumers and businesses across the country," a statement by Hutchison said.

According to Matthew Howett, an analyst for Ovum revealed that the take- over was thwarted after the Office of Communications and the Competition and Markets Authority went against the takeover, which was  "coupled with an unsympathetic EU Competition Commission, always made [that deal] a tricky one to get through".

In case the merger succeeds, this would mean there would only be three companies left to compete in UK's mobile network operators: Vodafone, BT's Everything Everywhere and Three-O2.

Howett further explained that "the sentiment for greater industry consolidation started to wane" after "suspected price increases in markets."  

TagsLi Ka-shing, Hutchison Whampoa, European Commission, O2