Vodafone-Three merger could get green light, watchdog says

Published On Nov 5, 2024, 4:32 AM

The UK's Competition and Markets Authority (CMA) has provisionally cleared a potential merger between Vodafone and Three, provided both companies agree to consumer price protections and enhance the UK's 5G rollout. The CMA had previous concerns that the merger might lead to price increases but believes these can be addressed through commitments by Vodafone and Three. The companies argue the merger will benefit the UK mobile market by fostering competition and improving service quality, specifically by extending 5G infrastructure to schools and hospitals. The CMA is currently soliciting public opinion on its proposals, with a final decision due by December 7.

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The merger between Vodafone and Three is likely to enhance competition in the UK mobile sector, particularly in the 5G space, which could positively impact their market positions and future earnings. If approved, this merger could lead to operational synergies and better service offerings, driving customer growth.

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The findings come from a report covering the three-year period after the Brexit deal was signed.

Watchdog has particular concerns about the customers least able to afford mobile services.