British Regulators Approve $19 Billion Vodafone-Three Merger with Conditions

 

A pedestrian walks past a Vodafone store in central London 

Britain’s Competition and Markets Authority (CMA) has approved the £15 billion ($19 billion) merger between Vodafone and Three, subject to specific conditions, paving the way for one of the largest shake-ups in the UK mobile market.

The CMA’s approval is contingent on both companies committing to significant investments to expand a combined 5G network across the UK. Additionally, the merged entity must place caps on certain mobile tariffs and ensure fair access by offering “preset contractual terms” to mobile virtual network operators (MVNOs) that rely on established networks.

Vodafone and CK Hutchison, the parent company of Three, announced the deal last year. The approved transaction will give Vodafone a 51% controlling stake in the new entity, while CK Hutchison will retain a minority ownership interest.

Kester Mann, director of consumer and connectivity at CCS Insight, called the merger a pivotal moment in the UK mobile market, with the new combined company representing a customer base of 29 million. He added that the conditions imposed were less restrictive than expected, offering a positive outcome for both companies.

Vodafone anticipates the deal will be finalized by the first half of 2025. This approval marks the end of months of intense regulatory scrutiny as the UK mobile market adjusts to the implications of this major merger.