Telefonica agrees to sell O2 to Hutchison Whampoa

Pedestrians pass an O2 mobile phone store, operated by Telefonica SA, in London, U.K.
Chris Ratcliffe | Bloomberg | Getty Images
Pedestrians pass an O2 mobile phone store, operated by Telefonica SA, in London, U.K.

Spanish telecommunications firm Telefónica has agreed to sell its O2 U.K. operation to Hutchison Whampoa.

Telefónica and the Hong Kong based holding company agreed on a purchase price of £10.25 billion ($15.24 billion)—with about £9.25 billion composed in up front payment.

Regulatory authorities will need to approve the deal before it can be completed.

Hutchison's owner, Hong Kong billionaire Li Ka-shing, announced in January the plans to buy O2. The conglomerate already owns British mobile operator Three.

Li is Asia's richest individual, with a fortune estimated by Forbes at about $35 billion. His sprawling ports-to-retail global conglomerate operates in more than 50 countries.

—The Associated Press contributed to this report.