A pedestrian walks past a Vodafone store in central London on May 16, 2023. British mobile giant Vodafone is to axe 11,000 jobs over three years in the latest cull to hit the tech sector, as new boss Margherita Della Valle slammed recent performance.
Adrian Dennis | AFP | Getty Images
Britain’s competition regulator on Thursday approved the merger between telecommunication firms Vodafone and Three in the U.K., subject to certain conditions.
The Competition and Markets Authority (CMA) said the £15 billion ($19 billion) tie-up should be allowed to proceed if both companies sign “binding commitments to invest billions” to roll out a combined 5G network across the U.K.
The combined entity would also be required to cap certain mobile tariffs and “offer preset contractual terms” to so-called mobile virtual network operators (MVNOs) — mobile operators that piggyback off of another company’s network.
Vodafone and CK Hutchison, the owner of the Three U.K. network, announced the transaction last year. The deal, now approved, will merge the two brands’ U.K. businesses, giving Vodafone a 51% controlling stake and leaving CK Hutchison with the minority interest.
The CMA’s decision comes after it opened an antitrust probe in to the deal in January and announced an in-depth investigation in April. Last month, the competition watchdog laid out a path for the deal to move forward, if certain remedies were adopted.
The regulator was concerned that the merger, which will trim the number of major telecommunications network players from four to three, would lead to higher prices or reduced services.
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