The º£½ÇÊÓƵ's competition watchdog has given the green light to Vodafone’s monumental £16.5bn merger with CK Hutchison’s Three º£½ÇÊÓƵ, forming the country's largest mobile operator. In a statement released on the London Stock Exchange, Vodafone characterised the deal as a "once-in-a-generation opportunity to transform the º£½ÇÊÓƵ’s digital infrastructure," CEO Margherita Della Valle celebrated the birth of a "new force" in the telecoms market.
This approval comes after nearly 18 months of consideration by the Competition and Markets Authority (CMA), which had previously expressed concerns that the merger could result in increased bills for millions of customers, as reported by .
Last month, the CMA indicated it would back the deal if both companies committed to an £11bn plan to enhance the merged group’s º£½ÇÊÓƵ network.
On Thursday, Vodafone and Three vowed to invest £11bn and establish "one of Europe’s most advanced 5G networks," set to serve over 50m customers. The statement confirmed this commitment would not require any public funding.
Stuart Mcintosh, the chair of the CMA’s inquiry group, stated: "After extensive feedback, we believe the merger is likely to boost competition in the º£½ÇÊÓƵ mobile sector and should be allowed to proceed, but only if Vodafone and Three agree to implement our proposed measures."
Vodafone’s Margherita Della Valle asserted that consumers and businesses would benefit from "wider coverage, faster speeds and better-quality connections across the º£½ÇÊÓƵ," following the merger.
Canning Fok, deputy chairman of CK Hutchison and chairman of CK Hutchison Group Telecom Holdings, has expressed his approval following the green light for the telecoms deal. He remarked: "Today’s approval releases the handbrake on the º£½ÇÊÓƵ’s telecoms industry, and the increased investment will power the º£½ÇÊÓƵ to the forefront of European telecommunications."
Fok emphasised the company's enduring commitment to the º£½ÇÊÓƵ market, stating: "We have been operating telecoms businesses in the º£½ÇÊÓƵ for over three decades and Three º£½ÇÊÓƵ for the past two. " He underscored their contributions, adding: "We have invested in the people and the infrastructure, helping to bring the benefits of mobile connectivity to º£½ÇÊÓƵ businesses and consumers."
Reflecting on the future post-merger benefit, Fok concluded: "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 º£½ÇÊÓƵ’s digital infrastructure and ensuring customers across the country benefit from world-beating network quality."
