Vodafone: CMA expresses reservations about Three deal
(CercleFinance.com) - On Friday, the UK's Competition Authority, the CMA, expressed reservations about the proposed merger between Vodafone and Three, two of the country's leading mobile operators.
Following its in-depth investigation, which began in April, the CMA believes that the proposed merger could significantly restrict competition in the UK mobile telephony market.
In June 2023, Vodafone and CK Hutchison, the owner of Three, announced their intention to merge their UK cell phone subsidiaries, Vodafone UK and Three UK respectively.
The merger would reduce the UK market to three major players, alongside 02 (Telefonica) and EE (BT), instead of the current four.
In its conclusions, the CMA explains that it expects the operation to result in higher subscription prices to the detriment of consumers and less investment in the latest-generation 5G technology.
For their part, Vodafone and Three defended their project this morning, citing a unique opportunity to transform the digital landscape in Great Britain.
In particular, the two groups disagreed with the CMA on subscription charges, stressing that the deal will benefit consumers.
Vodafone and Three also pointed out that the CMA's decision is not final, and that they hope to be able to work with the agency to get their marriage approved.
Unaffected by all these announcements, Vodafone shares were up 0.8% on Friday morning on the London Stock Exchange.
Copyright (c) 2024 CercleFinance.com. All rights reserved.
Following its in-depth investigation, which began in April, the CMA believes that the proposed merger could significantly restrict competition in the UK mobile telephony market.
In June 2023, Vodafone and CK Hutchison, the owner of Three, announced their intention to merge their UK cell phone subsidiaries, Vodafone UK and Three UK respectively.
The merger would reduce the UK market to three major players, alongside 02 (Telefonica) and EE (BT), instead of the current four.
In its conclusions, the CMA explains that it expects the operation to result in higher subscription prices to the detriment of consumers and less investment in the latest-generation 5G technology.
For their part, Vodafone and Three defended their project this morning, citing a unique opportunity to transform the digital landscape in Great Britain.
In particular, the two groups disagreed with the CMA on subscription charges, stressing that the deal will benefit consumers.
Vodafone and Three also pointed out that the CMA's decision is not final, and that they hope to be able to work with the agency to get their marriage approved.
Unaffected by all these announcements, Vodafone shares were up 0.8% on Friday morning on the London Stock Exchange.
Copyright (c) 2024 CercleFinance.com. All rights reserved.