CMA Questions £15bn Merger as Vodafone and Three Respond

September 30, 2024 05:21 PM BST | By Team Kalkine Media
 CMA Questions £15bn Merger as Vodafone and Three Respond
Image source: Shutterstock

Highlights:

  • Vodafone and Three addressed CMA concerns over their £15 billion merger, pledging to freeze tariffs for value customers and support MVNOs.
  • The companies expressed confidence that the merger will benefit consumers despite concerns about potential price hikes and service reduction.
  • Due to changes in UK Listing Rules, shareholder approval is not required, leaving the final decision with the CMA by 7 December.

Telecommunications giants Vodafone and Three have responded to the UK Competition and Markets Authority’s (CMA) concerns regarding their proposed £15 billion merger. The two firms, which represent some of the UK's largest mobile operators, expressed confidence in resolving the watchdog’s issues, particularly regarding potential impacts on pricing and service quality for mobile customers.

The CMA had previously raised concerns that the merger could lead to increased prices for millions of mobile users and reduce the diversity of services offered. In response, Vodafone and Three pledged to freeze tariffs at £10 or below for value-focused customers and committed to maintaining social tariffs on their SMARTY and VOXI 4 Now brands. Additionally, they proposed an initiative to encourage mobile virtual network operators (MVNOs), such as Giffgaff, to take advantage of increased network capacity following the merger.

Both companies remain optimistic that these measures will address the concerns raised by the CMA and pave the way for the deal to go through. Vodafone also confirmed that shareholder approval would not be required due to recent changes in the UK Listing Rules, which took effect in July 2024. As a result, the fate of the merger now rests solely with the CMA, which has a deadline of 7 December to make its final decision.

Vodafone and Three believe that the merger will allow for greater network investment and capacity, ultimately benefitting consumers by improving services. However, the CMA’s decision will be crucial in determining whether the deal can move forward without major regulatory obstacles.


Disclaimer

The content, including but not limited to any articles, news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations and video (Content) is a service of Kalkine Media Limited, Company No. 12643132 (Kalkine Media, we or us) and is available for personal and non-commercial use only. Kalkine Media is an appointed representative of Kalkine Limited, who is authorized and regulated by the FCA (FRN: 579414). The non-personalised advice given by Kalkine Media through its Content does not in any way endorse or recommend individuals, investment products or services suitable for your personal financial situation. You should discuss your portfolios and the risk tolerance level appropriate for your personal financial situation, with a qualified financial planner and/or adviser. No liability is accepted by Kalkine Media or Kalkine Limited and/or any of its employees/officers, for any investment loss, or any other loss or detriment experienced by you for any investment decision, whether consequent to, or in any way related to this Content, the provision of which is a regulated activity. Kalkine Media does not intend to exclude any liability which is not permitted to be excluded under applicable law or regulation. Some of the Content on this website may be sponsored/non-sponsored, as applicable. However, on the date of publication of any such Content, none of the employees and/or associates of Kalkine Media hold positions in any of the stocks covered by Kalkine Media through its Content. The views expressed in the Content by the guests, if any, are their own and do not necessarily represent the views or opinions of Kalkine Media. Some of the images/music/video that may be used in the Content are copyright to their respective owner(s). Kalkine Media does not claim ownership of any of the pictures displayed/music or video used in the Content unless stated otherwise. The images/music/video that may be used in the Content are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have used reasonable efforts to accredit the source wherever it was indicated or was found to be necessary.


Sponsored Articles


Investing Ideas

Previous Next