Vodafone Group Plc. has announced that its proposed merger with Three UK, a subsidiary of CK Hutchison Holdings Ltd., has received approval from the UK's Competition and Markets Authority (CMA). This decision comes after 18 months of careful analysis. The agreement, first reached in June 2023, will see Vodafone holding a 51% stake in the new combined venture, while CK Hutchison will hold 49%.
The CMA began its initial investigation into the merger in January 2024. By September, it had provisionally determined that the proposed £15 billion merger might significantly reduce competition within the UK market. Despite these concerns, the CMA has now approved the transaction.
Following this approval, Vodafone and Three intend to thoroughly review the CMA’s final report and will continue discussions to finalize the merger conditions. The completion of the merger is anticipated in the first half of 2025. Post-merger, Vodafone will initially control 51% of the merged entity. A Put and Call option will allow Vodafone the potential to acquire CK Hutchison’s 49% share three years after the merger, contingent on certain conditions.
An ambitious investment plan accompanies this merger, with both companies pledging £11 billion to develop an advanced 5G network expected to serve 99% of the UK population and benefit over 50 million customers. Notably, this extensive network investment will not require public funding. As underscored by the CMA, this development is projected to enhance competition among mobile network operators in the long term, ultimately benefiting the millions who depend on mobile services.
