The Competition and Markets Authority has approved a near 15-billion-pound merger between Three and Vodafone that will create the UK’s largest phone network.
The Authority made the decision despite a previous statement that said tens of millions of customers could pay more because of the deal.
Vodafone and Three have committed to invest £11 billion to create one of Europe’s most advanced 5G networks. The new network will reach 99% of the population and serve over 50 million customers.
Vodafone CEO Margherita Della Valle said: “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.”
Vodafone offers a TV service to its broadband customers via an Apple TV box, while Three has so far resisted.
Canning Fok, Deputy Chairman of CK Hutchison and Chairman of CK Hutchison Group Telecom Holdings, said: “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 say they study the Final Report in detail and will continue to engage with the CMA as they put in place the final undertakings.
The merger is expected to formally complete during the first half of 2025. Vodafone will own 51% of the equity and, after three years following completion and subject to certain conditions, Vodafone may acquire Hutchison’s 49% stake via a Put and Call option.
