5th Nov 2024 09:36
(Alliance News) - Vodafone Group PLC on Tuesday in a joint statement with Hutchison 3G UK, trading as Three UK, said it welcomes the UK Competition and Markets Authority's findings into the pair's proposed landmark merger.
The CMA on Tuesday revealed the merger between Vodafone Group PLC and Three UK could proceed should network investments and protection commitments be adhered to as part of the deal, adding that it has set out a remedies working paper to obtain feedback on its proposed remedy package.
The UK's principal competition regulator said that the pair could address competition concerns regarding their planned GBP15 billion merger announced last summer through investing in networks and customer protections.
It stated that, "a multi-billion-pound commitment to upgrade the merged company's network across the UK, including the roll-out of 5G, combined with short-term customer protections" could resolve issues its investigation identified in September and let the merger, which would create the UK's largest mobile phone network, go ahead.
The regulator provisionally found that "a legally binding commitment to undertake the network integration and investment programme proposed by Vodafone and Three would significantly improve the quality of the merged company's mobile network, boosting competition between mobile network operators in the long term and benefiting millions of people who rely on mobile services".
Berkshire, England-based Vodafone responded in a joint statement with Three UK welcoming its recognition of the associated benefits of their joint network plan.
They stated that whilst they have to review the working paper in further detail, the CMA's communications indicate that it provides a path to final clearance.
They added that: "An appropriate balance appears to have been struck by ensuring that the significant benefits of the merged company’s investments can be realised in full and at pace to the benefit of the country and its citizens, while addressing the CMA’s stated concerns".
The deal has been under investigation by the UK watchdog following its proposal in June last year.
The CMA's final decision on the merger is due on or before December 7.
Stuart McIntosh, chair of the CMA inquiry group leading the investigation, said: "We believe this deal has the potential to be pro-competitive for the UK mobile sector if our concerns are addressed.
"Our provisional view is that binding commitments combined with short-term protections for consumers and wholesale providers would address our concerns while preserving the benefits of this merger. "
Shares in Vodafone rose 1.6% to 73.32 pence on Tuesday morning in London.
By Christopher Ward, Alliance News reporter
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