Subj : UK competition watchdog confirms Vodafone-Three merger requires f
To   : All
From : TechnologyDaily
Date : Thu Apr 04 2024 09:45:05

UK competition watchdog confirms Vodafone-Three merger requires further 
investigation

Date:
Thu, 04 Apr 2024 08:39:16 +0000

Description:
Vodafone-Three deal will now face "in-depth investigation" from UK CMA over 
competition fears.

FULL STORY
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The planned merger between Vodafone and Three is set to face an "in-depth 
investigation" from the UK's competition watchdog over fears the deal may 
negatively affect the market. 

The Competition and Markets Authority (CMA) has confirmed it will be holding 
a further probe into the planned 15bn/$19bn merger. 

In its announcement, the CMA said the action was taken after an examination 
of current information which it says brought it to the conclusion that the 
deal, "may be expected to result in a substantial lessening of competition 
within a market or markets in the United Kingdom." Vodafone-Three probe 

The announcement follows a warning in March 2024 that the CMA was set to 
launch a further investigation into the deal unless Vodafone and Three could 
provide "meaningful solutions" to initial concerns surrounding the deal. 

Chief among the worries is that the deal, which would take the number of 
major mobile operators in the UK from four to three, would particularly harm 
smaller MVNOs, who may find it harder to negotiate good deals for their 
customers from a shrinking pool of providers. 

The two networks had anticipated the CMA's move but said they remained 
confident the merger will deliver "significant benefits for competition, 
customers and the country." 

The CMA has set a deadline of September 18, 2024 to complete its 
investigation. 

The merger was announced in June 2023, with plans to form a new 15bn-valued 
telco giant and "create one of Europe's leading 5G networks." 

Vodafone was set to be the slight majority owner of the new combined group, 
currently known as MergeCo, controlling 51%, with CK Hutchinson keeping the 
remaining 49%. 

The two companies were also keen to highlight the advantages of combining 
their two 5G networks for consumers and businesses alike, with MergeCo 
intending to invest over 6 billion in the first five years, and 11 billion 
over a ten year plan, to create a best-in-class 5G network, supporting 
between 8,000 and 12,000 new jobs in the wider economy. 

MergeCo also expects to deliver up to 5 billion per year in UK economic 
benefit by 2030, supporting the digital transformation for schools, hospitals 
and businesses, with its standalone 5G network will cover every school and 
hospital in the UK by 2030, helping deliver the Governments stretch ambition 
as set out in the Wireless Infrastructure Strategy. Check out the best cheap 
cell phone plans



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Link to news story:
https://www.techradar.com/pro/phone-communications/uk-competition-watchdog-con
firms-vodafone-three-merger-requires-further-investigation


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