The merger is expected to be completed in the first half of 2025. Credit: Vodafone Limited.

The UK’s Competition and Markets Authority (CMA) has approved the $19m merger of Vodafone and Three, marking a significant development in the UK telecoms sector.

This decision follows an 18-month analysis by the CMA.

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Vodafone and CK Hutchison, the parent company of the Three UK network, announced the deal in 2023.

The CMA’s decision comes after an antitrust probe initiated in January and an in-depth probe in April. The regulator expressed concerns about the merger reducing the number of major telecommunications network players from four to three in the country, potentially leading to higher prices or reduced services for customers. However, the deal was allowed to proceed with certain conditions.

Vodafone Group CEO Margherita Della Valle described the merger as “great for customers, great for competition and great for the country.”

The companies have committed to investing £11bn to develop one of Europe’s most advanced 5G networks. This network is expected to cover 99% of the population, benefiting more than 50 million customers with improved quality, reliability, and capacity.

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The investment aims to support the growth of the UK’s science and technology sectors, improve public services, and narrow the digital divide.

The merger creates a stronger player in the UK mobile market, enhancing competition in both retail and wholesale sectors, according to Vodafone.

The £11bn investment will not require public funding and is expected to boost long-term competition among mobile network operators.

Vodafone and Three will review the CMA’s Final Report and continue engaging with the authority as they finalise the merger details.

The merger is expected to be completed in the first half of 2025.

Vodafone will hold 51% of the equity, with an option to acquire Hutchison’s 49% stake after three years, subject to certain conditions.