Britain's competition regulator has approved the £15billion merger of Three UK and Vodafone, clearing the way for the creation of the country's biggest mobile operator. The Competition and Markets Authority said on Thursday the deal can proceed if the two firms agree to spend billions rolling out a combined 5G network across the UK.
Vodafone and Three UK, whose parent company is Hong Kong-based CK Hutchison, have pledged to invest £11billion creating such a network over the next decade. The pair have already promised to cap their lowest-cost mobile plans at £10 for two years after the CMA raised concerns that the tie-up would lead to higher bills for millions of mobile users.
First announced in June 2023, the merger will create the UK's largest mobile operator, with around 27 million customers, and cut the number of operators from four to three. Vodafone will hold a 51 per cent stake in the enlarged business but have an option to buy CK Hutchison Group's 49 per cent stake three years after the deal is finalised, depending on certain conditions.
Thumbs up: The Competition and Markets Authority has approved the proposed £15billion merger between Vodafone and Three UK. The two firms believe their consolidation will provide customers with a better 5G service, up to £5billion in economic benefits annually to the country by 2030, and advance the UK's digital transformation.
