On Thursday, December 5, Britain gave the green light to the 19 billion-Dollar merger between Vodafone UK and Hutchison’s Three UK. This deal, which creates the largest mobile operator in the country, reduces the number of major mobile networks from four to three.
The Competition and Markets Authority (CMA) had initially raised concerns that the merger could drive up prices for consumers. However, the regulator later acknowledged that the companies’ commitments to invest in network development and offer protections for customers were sufficient to address these concerns.
The CMA said, “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.”
The CMA emphasized that the merger would proceed on the condition that Vodafone and Three make binding commitments to invest billions in expanding a combined 5G network across the U.K. Additionally, the two companies will be required to cap certain mobile tariffs and offer preset contractual terms to mobile virtual network operators (MVNOs), which rely on other networks to provide services.
Vodafone and CK Hutchison, which owns Three UK, announced the merger last year. With the approval now in place, Vodafone will hold a 51% controlling stake in the merged entity, while CK Hutchison will retain a minority share.
The CMA’s decision follows months of investigation, including an antitrust probe opened in January, with a deeper investigation launched in April. Last month, the competition watchdog outlined a way forward for the deal, contingent on the adoption of specific remedies to address competition concerns.
By consolidating the U.K.’s telecom market, the deal will reduce the number of major players, potentially reshaping competition and affecting prices and services for consumers.
