Vodafone (VOD, Financial) and CK Hutchison's UK subsidiary, Three UK, have received approval from the UK's Competition and Markets Authority (CMA) for their £15 billion ($19.5 billion) merger. This merger will create the largest mobile operator in the UK by revenue. The CMA's approval comes after promises to invest significantly in upgrading the UK's mobile networks and protecting consumers from price hikes.
In June 2023, CK Hutchison announced a binding agreement with Vodafone to merge their UK telecom businesses. The new joint venture will be 51% owned by Vodafone and 49% by CK Hutchison's European telecom company, CKHGTH. The merger is expected to complete in the first half of 2025, with Vodafone potentially acquiring CKHGTH's 49% stake three years later.
Analysts suggest this decision could encourage further consolidation within the European telecom sector, as companies seek more favorable merger conditions.
