VIRGIN/O2 DEAL COULD HIKE PRICES

CUSTOMERS risk being hit with price hikes if a megamerger between mobile giant

O2 and cable heavyweight Virgin Media happens, an expert has warned.

Telefonica, O2’s Spanish owner, yesterday confirmed early stage talks with Virgin Media-owner Liberty Global, controlled by 79-year-old US “Cable Cowboy” John Malone.

A tie-up would rival BT, which owns mobile operator EE, and bring together O2’s 34 million customers with Virgin’s 5.3 million broadband, pay-TV and mobile users.

Telefonica has been considering options for

O2 since 2016, when the EU blocked a planned takeover by

Three mobile owner CK Hutchison.

Telefonica said talks were initiated by both sides but stressed there was no guarantee a deal would be done.

Professor John Colley, Associate Dean at Warwick Business School, called the talks “opportunistic” if the Competition and Markets Authority waives through deals amid the current business turmoil caused by Covid-19

He said: “It seems unlikely that customers can gain from this merger as it is unlikely that sufficient competition will remain to pass on savings.” dealership

Car has held Pendragon rival talks with merger secure to but failed confirmed Lookers, Pendragon with a deal. ended, had discussions claiming Sky News the snubbed Lookers approach.