Regulator approves Telefonica's O2 acquisition.(UNITED KINGDOM)

European Telecom, January, 2006

Telefonica SA of Spain has finally gained approval for its $31.5 billion takeover of U.K.'s mobile-phone operator O2 from the European Commission (EC). The Spanish telecom operator has agreed to move away from the FreeMove alliance, a consortium of leading European cellular phone companies.

The commission earlier expressed reservations over limiting competition for global roaming services. Telefonica consented to part from the FreeMove alliance. O2 is a part of a smaller Starmap alliance. According to an EC official, Telefonica's undertaking to leave the FreeMove has led to the clearing of the acquisition deal.