
Vodafone’s Chief Executive Officer, Margherita Della Valle, has lauded the UK’s Competition and Markets Authority (CMA) for its progressive approach to antitrust policy, following the regulator’s approval of Vodafone’s £16.5 billion merger with Three UK. Speaking during an earnings call on Tuesday, Della Valle highlighted that the UK was leading the way on competition regulation, particularly in the telecoms sector, with its approval of the merger in December 2024.
According to the Financial Times, Della Valle commended the CMA for “making a clearer example of how one can modernise the approach to the telco world,” referencing the authority’s role in facilitating the merger, which will create the UK’s largest mobile operator. The deal, which combines Vodafone’s UK operations with CK Hutchison’s Three UK, is expected to complete in the first half of 2025, resulting in a company that serves 29 million customers across the country.
The merger was given the green light after the CMA secured commitments from the two companies to invest billions of pounds into developing a unified 5G network. Additionally, the companies agreed to cap certain mobile tariffs and data plans. However, as per the Financial Times, the CMA did not demand that Vodafone sell off any parts of its business, a significant deviation from previous telecom mergers in Europe where divestitures were often required.
Related: UK Approves £15 Billion Vodafone-Three Merger With Conditions
Della Valle’s praise for the CMA’s actions is seen as a supportive message to the regulator, which has been under scrutiny from political figures such as Sir Keir Starmer. Starmer has criticized the CMA for impeding economic growth, and the UK government recently dismissed Marcus Bokkerink, the chair of the CMA, amid increasing calls for regulators to promote investment. Nonetheless, Della Valle affirmed that the CMA’s approach to the Vodafone-Three merger demonstrated a clear understanding of how telecom investments contribute to long-term competition and customer benefits.
The CEO also addressed European regulators, urging the European Commission to reconsider its current merger guidelines. She stated that the EU’s standard practice of evaluating telecom mergers over a short period of 18 months to three years was insufficient, given the rapid pace of technological change in the industry. Per the Financial Times, Della Valle suggested that the EU should expand its outlook on merger assessments, following the CMA’s example of taking a longer-term view.
Vodafone’s positive performance in several key markets, including the UK, Turkey, South Africa, and Egypt, contributed to stronger-than-expected sales growth at the end of 2024. However, shares in the company fell more than 7% following a report of declining revenues in Germany, one of Vodafone’s most significant markets. Despite this, Della Valle remains optimistic about the company’s future, particularly with its ongoing network investments and the approval of the Three UK merger.
Source: The Financial Times
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