LONDON - The Competition and Markets Authority (CMA) has approved the merger of telecommunications giants Vodafone Group (LON:VOD) Plc and Three UK, a move that promises to reshape the British telecom landscape. The announcement, made today, concludes an 18-month comprehensive review by the CMA.
The merger is set to create one of Europe's most advanced 5G networks, with a planned £11 billion investment aimed at reaching 99% of the UK population. This initiative is expected to significantly enhance network quality, reliability, and capacity for over 50 million customers without the need for public funding.
Vodafone (NASDAQ:VOD) Group's CEO, Margherita Della Valle, hailed the merger as a significant step towards improving the UK's digital infrastructure, which is seen as crucial for economic growth, technological advancement, and the narrowing of the digital divide. The combined network will not only serve Vodafone and Three's customers but also extend benefits to VMO2's customer base.
Canning Fok, Deputy Chairman of CK Hutchison and Chairman of CK Hutchison Group Telecom (BCBA:TECO2m) Holdings, emphasized the company's long-standing commitment to the UK's telecom sector and expressed support for the merged entity's network investment plan.
The merger is expected to be completed in the first half of 2025, with Vodafone initially holding a 51% equity stake. Following a period of three years after the merger's completion, Vodafone may acquire Hutchison's remaining 49% stake, subject to certain conditions.
The CMA's approval indicates a belief that the merger will enhance long-term competition among mobile network operators, thereby benefiting millions of mobile service users in the UK. Vodafone and Three are set to review the CMA's Final Report in detail and will continue to coordinate with the authority as they establish the final terms of the merger.
This development signals a new era in the UK telecom industry, as the merger is poised to unleash more competition and investment, setting the stage for the UK to become a leader in European telecommunications. The information for this report is based on a press release statement.
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