Vodafone: merger with Three conditionally approved

(CercleFinance.com) - The UK's Competition Authority (CMA) announced on Thursday that it had given the final go-ahead to the merger of mobile operators Vodafone and Three, while demanding a number of concessions.


The regulator said it had made the merger conditional on the signing of binding agreements, including that the merged group invest several billion pounds in 5G technology nationwide.

The CMA explains that it has also demanded the implementation of a tariff capping mechanism designed to protect consumers, as well as the conclusion of a memorandum of understanding with the mobile virtual operators for a period of three years.

If Vodafone and Three comply with these commitments, the CMA will ensure that they are properly implemented, failing which the merger will be blocked, the body warns in a statement.

Last September, the competition authority expressed its reservations about the proposed merger, deeming it likely to significantly limit competition in the British mobile telephony market.

The merger of Vodafone UK and Three UK will reduce the British market to three major players, alongside 02 (Telefonica) and EE (BT), instead of the current four.

In a statement, Vodafone welcomed the decision, saying it would result in £11 billion of investment to create one of Europe's most advanced 5G networks.

On the London Stock Exchange, Vodafone shares were up 1.1% on Thursday morning following the announcements.

The telecom operator, which expects to complete the transaction in H1 2025, will own 51% of the new entity, with the option to buy back the remaining 49% of the capital within three years.


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