UK Telecom Landscape Transformed as Vodafone, Three Secure CMA Approval for Merger

On Thursday, Vodafone and Three, telecom services companies, secured approval from the UK’s Competition and Markets Authority (CMA) for their highly anticipated merger, paving the way for a transformative £11 billion investment in the nation’s telecom infrastructure.

The CMA’s decision comes after 18 months of in-depth analysis, greenlighting a merger that promises to elevate network quality, reliability, and capacity. The advanced 5G network will reach 99% of the population, enhancing public services, narrowing the digital divide, and bolstering businesses’ ability to manage growing data demands driven by technologies like AI.

Vodafone Group and CK Hutchison Holdings, the parent companies of Vodafone and Three, see the merger as a once-in-a-generation opportunity to strengthen competition and improve the UK’s telecom landscape.

Vodafone will hold a 51% equity stake in the new entity, with a potential option to acquire the remaining 49% from Hutchison three years after completion, expected in 2025.

“We have invested in the people and the infrastructure, helping to bring the benefits of mobile connectivity to UK businesses and consumers,” said Canning Fok, Deputy Chairman of CK Hutchison and CK Hutchison Group Telecom Holdings.

“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 UK’s digital infrastructure and ensuring customers across the country benefit from world-beating network quality.” He added.

Vodafone and Three will now finalise the undertakings required by the CMA while preparing to merge operations by mid-2025. As the UK telecom sector braces for a new era of competition and innovation, this merger sets a benchmark for European digital infrastructure investments.

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