Cellnex Shares Fall After UK Watchdog Says Telecoms Deal Raises Competition Concerns

By Ed Frankl and Jaime Llinares Taboada

Shares in Spain's Cellnex Telecom SA dropped on Friday after the U.K.'s competition watchdog said its proposed deal to buy CK Hutchison Holdings Ltd.'s telecoms towers in the country could harm competition.

The U.K.'s Competition and Markets Authority, which launched an inquiry into the deal in May, found on Thursday that the sale may raise "significant competition concerns" by preventing the emergence of a third national player in the U.K.

Shares in Cellnex Telecom at 0856 GMT were down 4.0% to EUR49.84.

"Less competition could mean higher prices or worse terms for both mobile operators and their customers," said Richard Feasey, chair of the regulator's independent inquiry group.

The watchdog is set to make a final decision by March 7, 2022.

Cellnex said it is reviewing the CMA's provisional findings on the deal and that it will engage with the regulator regarding possible remedies.

"Cellnex continues to believe that this is a strongly pro-competitive deal which will create firm incentives to unlock, improve and extend mobile coverage, including 5G, across the whole of the U.K.," it said.

Last year, Cellnex said it would buy Hong Kong-listed conglomerate CK Hutchison Holdings' European tower businesses and assets, including around 24,600 telecom sites, for around 10 billion euros ($11.33 billion). It has since already closed parts of the acquisition in some individual countries, such as Italy, Austria and Sweden.

Write to Ed Frankl at [e-mail]

(END) Dow Jones Newswires

12-17-21 0412ET