The proposed merger between Vodafone and Three is set to be investigated by the UK's Competition and Markets Authority (CMA). The watchdog will examine whether the deal could harm consumers through reduced choice or higher prices. The combined entity would become the UK's largest mobile network, serving approximately 27 million customers.
Both companies have defended the merger, arguing it would boost competition and investment. Vodafone UK chief executive Ahmed Essam stated that the deal would create a business with more resources to invest in infrastructure, better competing with larger converged players. Three UK chief executive Robert Finnegan added that the merger would accelerate 5G rollout, aiming to cover 95% of the population and all schools and hospitals with standalone 5G by the end of the decade.
However, the Unite union has warned that bills could rise by as much as £300 per year if the merger goes ahead. Three general counsel Stephen Lerner previously told the Business and Trade Committee that there are no merger-related price rises in the joint business plan, expressing confidence in CMA approval.
Analyst Paolo Pescatore of PP Foresight said the merger makes sense but expected concessions, particularly on network sharing. He noted that a precedent was set by the failed Three/O2 deal, and both parties must demonstrate the merger is in the interest of UK plc, the economy, and consumers.
The CMA has invited third parties, including other network operators, to submit views on the merger's potential impact on competition. CMA chief executive Sarah Cardell stated that the investigation will assess how the tie-up could affect competition, with a 40-working-day Phase 1 investigation to follow before findings are published.
