Vodafone and Three UK seek merger approval amid pricing changes
- Vodafone and Three UK are under scrutiny by the Competition and Markets Authority regarding their proposed £15 billion merger.
- To alleviate concerns about potential price increases, they have pledged to cap low-cost mobile plans at £10 for two years.
- The CMA is expected to make a final decision on the merger by December 7.
In the UK, Vodafone and Three UK are seeking approval for a £15 billion merger, which has been under scrutiny by the Competition and Markets Authority (CMA) since its announcement last summer. The CMA has the authority to block the merger if it believes it will disadvantage customers. In response to concerns raised by the CMA regarding potential price increases for consumers, the companies have committed to capping their lowest-cost mobile plans at £10 for two years after the merger. This cap will apply to 'value-focused' customers on Smarty deals, which currently offer plans starting at £5 per month, as well as to social tariffs for those receiving government benefits. Additionally, Vodafone and Three have pledged to facilitate access for virtual providers to their network, allowing smaller operators to offer competitive pricing. They also reaffirmed their commitment to invest £11 billion in the UK’s infrastructure, although the CMA has expressed skepticism about the feasibility of these investment promises. Vodafone plans to move forward with the merger without seeking shareholder approval, as new UK listing rules no longer require such consent for major deals. If approved, the merger would create the largest mobile phone operator in the UK, serving approximately 27 million customers. The CMA is expected to make its final decision on the merger by December 7.