LBTYA Liberty Global Ltd

--Owners of Virgin Media and O2 said deal should be swiftly approved

--UK antitrust regulator requested a transfer of the review

--European Commission said it is assessing U.K. request

By Adria Calatayud

Liberty Global PLC and Telefonica SA warned Thursday of a potential delay to a proposed merger between their British businesses if a review of the deal is transferred to U.K. regulators from the European Union's antitrust body.

The U.K.'s Competition and Markets Authority earlier on Thursday said it had requested the European Commission--the EU's antitrust authority--transfer to the CMA a review of the merger between Liberty Global's Virgin Media and Telefonica's O2.

A representative for Liberty Global and Telefonica said the companies formally requested the European Commission to approve the merger last week, and that they had kept the CMA and U.K. communications regulator Ofcom fully informed and engaged through the process. The deal should be swiftly approved, the companies said.

"We have made a compelling case to enable the European Commission to clear the transaction as soon as possible. Transferring the case to the CMA will delay this process and our ability to press on with improving the UK's broadband and 5G infrastructure, whilst creating new jobs in the U.K.," a representative of Liberty Global and Telefonica said.

The U.K. regulator said the review of the combination should be transferred given its potential impact on competition in several retail and wholesale telecommunication markets in the U.K.

The European Commission on Sept. 30 received notification of the proposed deal and is currently inviting comments from interested third parties.

"Ultimately, this is a decision for the EC, but as the merger will only impact UK consumers--and any effects would only be felt after the end of the transition period--it is only right for the CMA to request it back," CMA Chief Executive Andrea Coscelli said.

The CMA said the initial deadline for the European Commission to respond to its request is Nov. 19.

"We can confirm that the Commission has received a referral request from the U.K.'s Competition Authority on the assessment of the Liberty Global/Telefonica transaction and we are assessing it," a Commission spokeswoman said.

John Malone's Liberty Global and Spain's Telefonica agreed to combine their U.K. businesses in May, creating a telecom giant worth nearly $39 billion.

Write to Adria Calatayud at adria.calatayud@dowjones.com

(END) Dow Jones Newswires

October 08, 2020 11:27 ET (15:27 GMT)

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