The UK’s competition watchdog has said it needs even more time to investigate the planned £15bn merger between Vodafone and Three.
In an update, the CMA says it will now need several more months to complete its research and publish its findings.
It says the delay to December 7 is due to “very wide scope” of the inquiry, thanks in part to the large amounts of evidence produced by both companies, and the “technical and regulatory complexity of the sector”.
Vodafone-Three merger delay
The merger was announced in June 2023, with plans to form a new £15bn-valued telco giant and “create one of Europe’s leading 5G networks.”
However the news immediately caused concerns surrounding competition and fairness in the UK telecoms and mobile market. Chief among the worries is that the deal, which would take the number of major mobile operators in the UK from four to three, would particularly harm smaller MVNOs, who may find it harder to negotiate good deals for their customers from a shrinking pool of providers.
A spokesman from Vodafone told PA it was “not unusual” for such investigations to be extended.
“We appreciate the additional time it is taking to assess the extensive evidence submitted, which sets out how this transaction will significantly benefit over 50m mobile customers, enhance competition and help transform the UK’s digital infrastructure,” the company said.
The CMA had said in April 2024 that it would need to carry out an “in-depth investigation” into the merger, following an initial warning a month earlier that a further investigation would be needed unless Vodafone and Three could provide “meaningful solutions” to initial concerns surrounding the deal.
Vodafone was set to be the slight majority owner of the new combined group, currently known as MergeCo, controlling 51%, with CK Hutchinson keeping the remaining 49%.
The two companies were also keen to highlight the advantages of combining their two 5G networks for consumers and businesses alike, with MergeCo intending to invest over £6 billion in the first five years, and £11 billion over a ten year plan, to create a best-in-class 5G network, supporting between 8,000 and 12,000 new jobs in the wider economy.
MergeCo also expects to deliver up to £5 billion per year in UK economic benefit by 2030, supporting the digital transformation for schools, hospitals and businesses, with its standalone 5G network will cover every school and hospital in the UK by 2030, helping deliver the Government’s stretch ambition as set out in the Wireless Infrastructure Strategy.