The Competition and Markets Authority (CMA) has given its approval to the near-£15 billion merger between Three and Vodafone, resulting in the creation of the UK's largest mobile phone network. This decision comes despite earlier statements from the CMA expressing concerns that tens of millions of customers could face higher bills as a consequence of the deal.
Both Vodafone and Three have pledged to invest a substantial £11 billion in building one of Europe's most advanced 5G networks. The ambitious plan aims to achieve 99% population coverage and serve over 50 million customers. Vodafone CEO Margherita Della Valle expressed enthusiasm, stating: “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. 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.”
While Vodafone already offers a TV service to its broadband customers via an Apple TV box, Three has not yet ventured into this market. Canning Fok, Deputy Chairman of CK Hutchison and Chairman of CK Hutchison Group Telecom Holdings, added: “We have been operating telecoms businesses in the UK for over three decades and Three UK for the past two. We have invested in the people and the infrastructure, helping to bring the benefits of mobile connectivity to UK businesses and consumers. When Three and Vodafone are combined, CK Hutchison will fully support the merged business in implementing its network investment plan, the cornerstone of today’s approval by the CMA, transforming the UK’s digital infrastructure and ensuring customers across the country benefit from world-beating network quality.”
Vodafone and Three intend to thoroughly examine the CMA's Final Report and maintain open communication with the authority as they implement the agreed-upon measures. The merger is anticipated to be officially completed within the first half of 2025. Vodafone will hold 51% of the equity, and after a three-year period following completion, and subject to certain conditions, Vodafone may acquire Hutchison’s remaining 49% stake through a Put and Call option.