Notice: Vodafone Wins Approval for £16.5bn Merger With Three UK

Vodafone has been cleared to merge with Three UK after the Competition and Markets Authority (CMA) approved the £16.5 billion deal, creating the UK's largest mobile operator with more than 27 million subscribers. The regulator's independent inquiry group said the merger is likely to boost competition in the UK mobile sector and should be allowed to proceed — but only if the companies implement a package of legally binding commitments. The deal, which combines the third and fourth largest operators, is expected to formally complete in the first half of 2025.

Binding commitments on investment and pricing

Under the remedies, Vodafone will commit £11 billion to upgrading the combined network, including 5G coverage. The companies must also retain certain existing tariffs and data plans, including on sub-brands, for at least three years, provide short-term protections against price rises, and agree pre-set prices and contract terms so that virtual operators such as Sky Mobile, Lyca, Lebara and iD Mobile can obtain competitive wholesale deals. Implementation will be overseen jointly by Ofcom and the CMA.

Deal structure and reactions

Vodafone will own 51% of the merged company and CK Hutchison 49%, with Vodafone expected to buy out CK Hutchison's stake after three years. Margherita Della Valle, chief executive of Vodafone, said the decision "releases the handbrake on the UK's telecoms industry" and that the plan is "self-funded", with "no extra costs from public funding and no extra cost for our customers". Canning Fok, deputy chair of CK Hutchison, said the group would "fully support the merged business in implementing its network investment plan". Stuart McIntosh, chair of the CMA's independent inquiry group, said the regulator believes the merger "is likely to boost competition in the UK mobile sector" if the measures are implemented. Rival operator BT fiercely opposed the deal, and in September 2024 the CMA warned that millions of customers could face higher bills before demanding concessions. Karen Egan, an analyst at Enders Analysis, said: "Three high quality networks instead of four inferior ones will serve consumers and businesses better."

Key points

• Deal value £16.5 billion; creates the UK's largest operator with more than 27 million subscribers
• £11 billion of legally binding network investment, including 5G coverage
• Tariff protections for at least three years and wholesale terms for virtual operators
• Vodafone to own 51% and CK Hutchison 49%; completion expected in the first half of 2025

Company details

Vodafone Group Plc is a multinational telecommunications company headquartered in the United Kingdom, providing mobile and fixed-line services across markets in Europe and Africa. Website: vodafone.com.