TOP NEWS: CMA approves merger of Vodafone's UK operations and Three UK

(Alliance News) - The UK competition watchdog on Thursday approved the merger of Vodafone Group PLC's UK operations with Hutchison 3G UK, trading as Three UK, creating a telecommunications behemoth.

To secure approval for the GBP15 billion merger, the two companies have committed to an GBP11 billion investment programme to build "the UK's biggest and best network", with advanced 5G provision.

The Berkshire-based Vodafone expects the merger to complete in the first half of 2025. Vodafone will own 51% of the equity upon completion, and after three years has the option to acquire Hutchison's 49% stake.

The UK Competition & Markets Authority said it has "decided Vodafone's merger with Three should be allowed to proceed if both companies sign binding commitments to invest billions to roll out a combined 5G network across the UK. The network commitment would be supported by shorter term customer protections which would require the merged company to cap certain mobile tariffs and offer preset contractual terms to mobile virtual network operators, for a period of three years."

The decision announced on Thursday confirms a provisional approval issued by the CMA at the start of November. This had been conditional on the legally binding commitments which since have been agreed.

Stuart McIntosh, chair of the independent inquiry group that led the investigation, said: "Having carefully considered the evidence, as well as the extensive feedback we have received, we believe the merger is likely to boost competition in the UK mobile sector and should be allowed to proceed - but only if Vodafone and Three agree to implement our proposed measures."

Vodafone Chief Executive Officer Margherita Della Valle said: "Today's decision creates a new force in the UK's telecoms market and unlocks the investment needed to build the network infrastructure the country deserves. Consumers and businesses will enjoy wider coverage, faster speeds and better-quality connections across the UK, as we build the biggest and best network in our home market. Today's approval releases the handbrake on the UK's telecoms industry, and the increased investment will power the UK to the forefront of European telecommunications."

Vodafone shares were up 0.6% to 70.24 pence each on Thursday morning in London.

By Tom Budszus, Alliance News slot editor

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