Vodafone and Three Merger Approved By CMA

On Thursday it was revealed that the Competition and Markets Authority (CMA) has approved the long-anticipated merger between Vodafone UK and Three, paving the way for an £11 billion investment into the country's mobile network infrastructure.

The merger, set to be completed in the first half of 2025, will create a new telecoms powerhouse serving over 50 million customers. Vodafone will own 51% of the combined entity and, after three years following certain conditions, Vodafone may acquire Hutchison's 49% stake via a Put and Call option.

The combined company aims to build the UK's most advanced 5G network, covering 99% of the population with vastly improved speed, reliability, and capacity.

Margherita Della Valle, Vodafone Group CEO, hailed the decision as a “once-in-a-generation opportunity” to reshape the UK telecoms landscape, stating, “Consumers and businesses will enjoy wider coverage, faster speeds and better-quality connections across the UK, as we build the biggest and best network in our home market.”

The CMA's approval follows 18 months of detailed analysis, concluding the merger would increase competition and drive long-term benefits for consumers.

The £11 billion investment will require no public funding.

Canning Fok, Deputy Chairman of CK Hutchison, the parent company of Three, said: “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.”

The merger is expected to propel the UK to the forefront of European telecommunications, supporting economic growth, enhancing public services, and narrowing the digital divide.