Vodafone and Three are set to merge to form the UK’s largest mobile operator

Vodafone and Three have been approved to form the UK’s largest mobile operator after pledging to address concerns about network upgrades and price rises. The proposed £16.5 billion (about £20.9 billion) merger was approved by the Competition and Markets Authority (CMA) on Thursday following months of regulatory scrutiny, and is expected to be completed in the first half of 2025.

“Having carefully considered the evidence, and the extensive feedback we received, we believe the merger could increase competition in the UK mobile sector and should be allowed to go ahead – but only if Vodafone and Three agree to implement our proposed measures. ,” said Stuart McIntosh, chairman of the anti-trust investigation team, in a statement.

The approval was subject to both companies signing binding commitments to invest billions in expanding their combined 5G network over the next eight years. The agreement also requires the new entity to set alternative mobile prices and offer pre-set contract terms to mobile virtual network operators for three years, addressing CMA’s previous concerns that the merger could harm competition and lead to higher prices for customers.

The plan to merge two of the country’s top four mobile operators was first announced in 2023, and will create a network of 27 million customers once completed. Vodafone will own 51 percent of the combined business, and is expected to buy the remaining 49 percent after three years. The deal follows similar large-scale mergers between companies such as Orange and T-Mobile in 2010, and Virgin Mobile and O2 in 2021.