Hutchison Whampoa is set to buy U.K. wireless carrier O2 for $15 billion from Telefonica, said a Bloomberg report.

Together, O2 and Hutchison Whampoa’s Three would have more than 31 million subscribers making the largest telecom operator in the U.K.

Recently, wireless-market leader EE began exclusive talks to be acquired by BT Group. Earlier, O2 was in talks with BT as well.

Hong Kong-based Hutchison – promoted by Billionaire Li Ka-shing — was studying other options in Europe including merging its Italian mobile unit with a local competitor.

Telefonica will utilize the proceeds to reduce its net debt, which more than doubled in the decade through September as it went on a buying spree in Europe and Latin America. The 17.7 billion-pound takeover of O2 in 2006 is its most expensive acquisition on record.

The Spanish telecom carrier said in early 2014 that it would keep its debt below $49 billion. Exit from O2 will assist Telefonica to achieve its debt related targets.

Baburajan K
[email protected]