EU Almunia: Doubts Remedies Can Be Found in Hutchinson, Orange Austria Case

BRUSSELS--There are doubts whether effective remedies can be found to make Hutchinson Whampoa's (0013.HK) Austrian unit's bid to take over France Telecom's (FTE) Orange Austria acceptable to European antitrust authorities, European Competition Commissioner Joaquin Almunia said Tuesday.

In a speech in Cyprus, Mr. Almunia said the proposed $1.6 billion bid would bring the current four competitors in the national mobile market down to three.

"We have recently adopted a statement of objections in relation to this proposed merger. At this stage, the question remains whether effective remedies will be found," he said.

Mr. Almunia said there is a "similar situation" in the pending merger plans of United Parcel Service Inc. (UPS) and TNT Express (TNTE.AE).

He said that authorities are looking at whether the merged entity would face enough competition from rivals.

"These companies offer a service that has a broad impact on our economy, especially for cross-border trade, so it is important that customers continue to have access to these services at competitive conditions," he said.

Write to Laurence Norman at [e-mail]

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