Oversight of the merger’s conditions will be shared between the CMA and communications regulator Ofcom, ensuring commitments are met to expand 5G capability while preserving competition.
The CMA said its measures aim to address concerns about reduced market competition while driving improvements in coverage, speed, and reliability.
A Telecoms Shake-Up
The £16.5 billion ($21 billion) merger is expected to close by mid-2025, with Vodafone holding a 51% stake and Hong Kong-based CK Hutchison, Three UK’s parent company, retaining 49%. Vodafone has pledged to invest £11 billion in network upgrades during the first 12 months post-merger, without passing costs onto consumers.
Margherita Della Valle, Vodafone’s CEO, described the CMA’s decision as a transformative moment for the industry.
“Approval by the CMA releases the handbrake on the telecoms sector,” Della Valle said. “Consumers and businesses will benefit from wider coverage, faster speeds, and better connections.”
CK Hutchison co-managing director Canning Fok pledged full support for the merged company’s ambitious investment plans, calling them the “cornerstone” of CMA approval.
Legal and Regulatory Context
The merger reduces the U.K.’s major network operators from four to three — a shift Alex Haffner, a competition partner at Fladgate, said reflects CMA pragmatism.
