Vodafone U.K., Three Merger to Be Probed by U.K. Regulator

By Najat Kantouar

The U.K. Competition and Markets Authority started a formal investigation into Vodafone U.K.'s merger agreement with Three U.K.

The regulator said Friday that it will investigate the impact the deal will have on consumers and business, and that it now has 40 days to assess whether it will lead to a substantial lessening of competition.

In June, Vodafone said it entered into binding agreements with Hong-Kong-based CK Hutchison Group Telecom Holdings, in relation to a combination of Vodafone U.K. and Three U.K., their telecommunications businesses in the U.K.

Vodafone added then that it will own 51% of the combined business with CKHGT owning the other 49%, and that the combined business will invest 11 billion pounds ($13.52 billion) in the country over 10 years to create one of Europe's most advanced standalone 5G networks.

"This deal would bring together two of the major players in the U.K. telecommunications market, which is critical to millions of everyday customers, businesses and the wider economy. The CMA will assess how this tie-up between rival networks could impact competition before deciding next steps," CMA Chief Executive Sarah Cardell said.

Vodafone shares at 1012 GMT were up 0.48 pence, or 0.7%, at 68.60 pence. However, they are currently down 26% over the past 12 months.

Write to Najat Kantouar at najat.kantouar@wsj.com

(END) Dow Jones Newswires

January 26, 2024 05:34 ET (10:34 GMT)

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