BY ALISON TUDOR

HONG KONG—Hutchison Whampoa Ltd. agreed to buy Austria's third-largest mobile operator for about €1.3 billion ($1.71 billion) including debt, in a move that will enable the Hong Kong conglomerate, whose interests range from ports to telecommunications, to expand its market share in Austria.

Hutchison Whampoa's unit Hutchison 3G Austria said in a statement Friday that it has bought all of Orange Austria from France Telecom SA, which owned a 35% stake, and private equity firm Mid Europa Partners, which held the remaining 65% stake.

The deal is part of the continuing consolidation in Europe's telecom market—the world's most competitive—as mobile ...