Asian conglomerate Hutchison Whampoa, owned by the region’s richest man Li Ka-shing, is in talks to buy UK mobile network O2 in a £10.25bn ($15.36bn) deal.

Hong Kong-based Hutchison Whampoa confirmed in a statement it had entered “exclusive negotiations” set to last several weeks.

It already operates the Three network in the UK, and such a deal with Telefonica-owned O2 would create the country’s largest mobile group.

However, the agreement would be subject to approval by the European competition authorities, with such a move reducing the number of major industry players to three: Vodafone, O2/Three and EE, itself subject to a bid by local telco giant BT Group.

Frank Sixt, Hutchison’s group finance director, told the media he was confident the European Commission would allow a “four-to-three consolidation” based on previous decisions.

If approved, it would bolster Hutchison Whampoa’s growing global mobile footprint, which already includes networks in markets such as Australia, China, Indonesia, Vietnam, Italy, Denmark and Sweden.