Vodafone-Three £15 Billion Mega-Merger Faces Delay as CMA Extends Review

Vodafone and Three will have to wait longer for the approval of their £15 billion merger from the UK’s Competition and Markets Authority (CMA). The CMA has announced an extension for its investigation into the deal, citing the complex nature of the case.

The proposed merger, poised to create the UK’s largest mobile phone network, has been under intense scrutiny since its announcement last summer. According to the Evening Standard, the extension of the investigation timeline underscores the challenges posed by the “very wide scope” of the inquiry and the intricate technical and regulatory aspects involved.

Vodafone and Three have argued that the merger will lead to significant investments in their services, enabling them to better compete with industry giants such as EE (operated by BT) and Virgin Media-O2. They assert that the consolidation will result in enhanced service offerings and a stronger position in the market.

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The CMA’s update on Friday revealed that the new deadline for completing the investigation and publishing its findings has been set for December 7. The regulatory body emphasized the necessity of thoroughly examining the substantial evidence provided by both companies, as noted by Vodafone-Three.

A spokesperson from Vodafone remarked that it is “not unusual” for the regulator to extend its investigation period. He highlighted the importance of the additional time to thoroughly assess the extensive evidence presented, which outlines the potential benefits for over 50 million mobile customers, improved competition, and the transformation of the UK’s digital infrastructure.

This delay marks another chapter in the ongoing review process, as the telecommunications industry and stakeholders await the CMA’s final decision on this landmark merger.

Source: Evening Standard