Discussing the move, a spokesperson said: “The merger is a once-in-a-generation opportunity to transform the UK’s digital infrastructure. Vodafone and Three have committed to invest £11 billion to create one of Europe’s most advanced 5G networks.
“The new network will reach 99 per cent of the population, and benefit over 50 million customers, through significantly better quality, greater reliability and enhanced capacity for handling ever-increasing data demand. This demand is set to accelerate further with more widespread adoption of new technology, such as artificial intelligence.
“The combination creates a new, stronger player in UK mobile, with the scale to drive more intense competition across both the retail and wholesale markets.”
Vodafone Group CEO, Margherita Della Valle, said: “[The] decision creates a new force in the UK’s telecoms market and unlocks the investment needed to build the network infrastructure the country deserves.
“Consumers and businesses will enjoy wider coverage, faster speeds and better-quality connections across the UK, as we build the biggest and best network in our home market.
“Today’s approval releases the handbrake on the UK’s telecoms industry, and the increased investment will power the UK to the forefront of European telecommunications.”
Deputy chairman of CK Hutchison and chairman of CK Hutchison Group Telecom Holdings, Canning Fok, said: “We have been operating telecoms businesses in the UK for over three decades and Three UK for the past two.
“When Three and Vodafone are combined, CK Hutchison will fully support the merged business in implementing its network investment plan, the cornerstone of today’s approval by the CMA.”
The merger is expected to formally complete during the first half of next year. According to a statement, Vodafone will own 51 per cent of the equity, and three years following completion, may acquire Hutchison’s 49 per cent stake, via what’s know as a ‘put and call’ option.
