Vodafone and Three's £16.5bn mega merger approved by competition watchdog

The UK's competition watchdog has given the green light to Vodafone’s monumental £16.5bn merger with CK Hutchison’s Three UK, 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 UK’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 City AM.

Last month, the CMA indicated it would back the deal if both companies committed to an £11bn plan to enhance the merged group’s UK 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 UK 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 UK," 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 UK’s telecoms industry, and the increased investment will power the UK to the forefront of European telecommunications."

Fok emphasised the company's enduring commitment to the UK market, stating: "We have been operating telecoms businesses in the UK for over three decades and Three UK 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 UK businesses and consumers."