VODAFONE and Three, the UK division of Hong Kong-based CK Hutchison, have received approval from the Competition and Markets Authority (CMA) for their planned merger.
The deal will create the largest mobile phone operator in Britain by customer numbers.
The CMA announced its decision on Thursday, stating the merger could proceed after Vodafone and Three pledged to invest billions of pounds to expand the UK’s high-speed 5G network.
The merger, valued at around £16.5 bn, was first announced in June last year. Together, Vodafone and Three serve 27 million customers. Vodafone stated the deal is expected to be completed in the first half of next year.
Following the merger, the new entity will surpass BT EE and Virgin Media O2 as the UK’s largest mobile operator in terms of customer numbers.
Stuart McIntosh, who led the CMA inquiry into the merger, 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.”
Vodafone described the merger as a move to create “a new force in UK mobile, unleashing more competition and investment to transform the UK telecoms landscape.”
In a joint statement, Vodafone and Three committed to investing £11 bn to develop an advanced 5G network in Europe. The network will cover 99 per cent of the UK population, benefiting over 50 million customers. The companies noted that demand for data is expected to grow with increased adoption of new technologies like AI.
Vodafone CEO Margherita Della Valle said, “Approval releases the handbrake on the UK's telecoms industry, and the increased investment will power the UK to the forefront of European telecommunications.”
Canning Fok, deputy chairman of CK Hutchison, added that his group will “fully support the merged business in implementing its network investment plan.”
(With inputs from AFP)
