Vodafone and Three’s £15bn mega-merger approved

A £15bn merger between Vodafone and Three UK has been given the green light by the Competition and Markets Authority.

The landmark telecommunications deal can go ahead if both companies agree to invest billions to roll out a combined 5G network across the UK, the watchdog said.

The companies have also been told to offer shorter-term customer protections which would require the merged company to cap certain mobile tariffs for three years.

Stuart McIntosh, chairman of the independent inquiry group leading the CMA’s investigation, said the deal is “likely to boost competition in the UK mobile sector and should be allowed to proceed – but only if Vodafone and Three agree to implement our proposed measures”.

Vodafone and Three’s merger will create the UK’s largest mobile operator, with some 27 million customers.

The deal is expected to complete formally during the first half of 2025.

Vodafone will own 51% of the equity and after three years will have the option to buy the rest of the merged company.

Vodafone chief Margherita Della Valle said the decision “creates a new force in the UK’s telecoms market and unlocks the investment needed to build the network infrastructure the country deserves”.

“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,” she said.

“Today’s approval releases the handbrake on the UK’s telecoms industry, and the increased investment will power the UK to the forefront of European telecommunications.”

Canning Fok, deputy chairman of CK Hutchison, which owns Three UK, said the merger would make sure “customers across the country benefit from world-beating network quality”.

Kester Mann, director at research firm CCS Insight, said the deal is “one of the most significant moments in the history of UK mobile”.

“The outcome – after months of intense regulatory scrutiny – is about as good as it could have got for Vodafone and Three.

“Not only did they secure approval, but the agreed remedies and commitments are less onerous than feared.”

Mr Mann added the new boss Max Taylor would face “difficult decisions” on jobs, branding and how to position it in the market.