LONDON (dpa-AFX) - British telecom major Vodafone Group Plc. (VOD.L, VOD) announced Thursday that the UK's Competition and Markets Authority or CMA has approved its proposed combination with CK Hutchison Holdings Ltd.'s Three UK.
The CMA approval follows 18 months of detailed and thorough analysis, the company noted.
It was in June 2023 that Vodafone and CK Hutchison agreed to combine their UK telecommunication businesses, Vodafone UK and Three UK. On closing the transaction, it was agreed that Vodafone would own 51% of the combined business and CK Hutchison 49%.
In January 2024, the CMA launched its first phase of investigation into the proposed combination.
In September, the CMA provisionally concluded that the proposed 15 billion pounds merger is likely to substantially lessen competition in the U.K.
Following the CMA's approval, Vodafone and Three now plan to study the final report in detail and will continue to engage with the CMA as they put in place the final undertakings.
The merger is expected to formally complete during the first half of 2025. Vodafone will own 51% of the equity and, after three years following completion and subject to certain conditions, Vodafone may acquire Hutchison's 49% stake through a Put and Call option.
Vodafone and Three have committed to invest 11 billion pounds to create an advanced 5G network, which is expected to reach 99% of the population and benefit over 50 million customers.
Vodafone noted that the 11 billion pounds network investment will require no public funding. As highlighted by the CMA, it will boost competition between the mobile network operators in the long term, benefiting millions of people who rely on mobile services.
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