Vodafone and Three £15 billion merger could go ahead – London Business News | Londonlovesbusiness.com

The Competition and Markets Authority (CMA) has indicated the Vodafone and Three £15 billion merger could go ahead.

The merger has the potential to be “pro-competitive” should they invest in the UK’s infrastructure to avoid price rises.

The CMA said the merger will commit to upgrade the UK’s mobile network over the next eight years, this will be a legal obligation to which the watchdog will oversee.

This will involve £11 billion of in investment and will provide a boost in competition for other network providers.

Stuart McIntosh, chairman of the CMA’s inquiry group, said, “We believe this deal has the potential to be pro-competitive for the UK mobile sector if our concerns are addressed.

“Our provisional view is that binding commitments combined with short-term protections for consumers and wholesale providers would address our concerns while preserving the benefits of this merger.”

Vodafone and Three have said the CMA’s provisional findings gives “a path to final clearance” of their merger plans.

“The merger will be a catalyst for positive change,” spokespeople for Vodafone and Three said.

“It will bring significant benefits to businesses and consumers throughout the UK, and it will bring advanced 5G to every school and hospital across the country.

“The merger is also closely aligned with the Government’s mission to drive growth and to encourage more private investment in the UK.”

Russ Mould, investment director at AJ Bell, said this would be a “game-changer” for Vodafone.

“Vodafone had banked on the merger being its ticket to regaining strength in the UK, boosting its customer numbers and triggering investment in a better mobile experience for users.

“Assuming it agrees to the competition authority’s demands, Vodafone could be at the forefront of a radical reshaping of the UK mobile network infrastructure.

“However, significant spending will inevitably lead to higher prices for consumers down the line, so the merger isn’t necessarily good for everyone.”