Wednesday, August 13, 2025
LBNN
  • Business
  • Markets
  • Politics
  • Crypto
  • Finance
  • Energy
  • Technology
  • Taxes
  • Creator Economy
  • Wealth Management
  • Documentaries
No Result
View All Result
LBNN

UK launches antitrust probe into planned $19B Vodafone / Three merger

Simon Osuji by Simon Osuji
January 26, 2024
in Creator Economy
0
UK launches antitrust probe into planned $19B Vodafone / Three merger
0
SHARES
3
VIEWS
Share on FacebookShare on Twitter

The U.K.’s Competition and Markets Authority (CMA) is launching a formal probe into the proposed merger between Vodafone and Three UK.

The news hardly comes as a surprise, given that the £15 billion ($19 billion) joint venture would reduce the U.K.’s main infrastructure-owning mobile networks from four to three (the other two being EE and O2), and the duo had already allowed until the end of 2024 for the deal to conclude. That is some 18 months form when they first revealed their plans back in June.

“This deal would bring together two of the major players in the U.K. telecommunications market, which is critical to millions of everyday customers, businesses and the wider economy,” CMA chief executive Sarah Cardell said in a statement. “The CMA will assess how this tie-up between rival networks could impact competition before deciding next steps.”

Phase 1

Today’s news signals the start of what is known as a “phase 1” investigation, which will involve assessing whether a proposed merger will create a “substantial lessening of competition,” while gathering key data from the parties involved, competitors, customers, among other stakeholders. This initial market analysis phase can take up to 40 days, after which the deal may proceed to a more in-depth “phase 2” investigation which can last a further six months — hence why Vodafone and Three had allowed themselves until the 2024 for the deal to be greenlighted.

“It was certain that the CMA would open a formal investigation — it is also certain to proceed to a full Phase 2 investigation,” Tom Smith, a former CMA legal director who’s now partner at London-based law firm Geradin Partners, explained to TechCrunch. “This means we should expect the CMA’s final decision in the Autumn.”

Three has in fact been in embroiled in one previous failed acquisition effort, when its parent company Hutchison tried to procure O2 in a £10.25 billion deal — this was kiboshed by EU regulators, though the deal reared its head again in 2022 when a European court adviser suggested the original court ruling should be dismissed. It’s not entirely clear how that might impact this latest merger attempt, but Smith reckons that deal is as good as dead, regardless of what any court might subsequently find.

“The previous Three/O2 merger is still technically going through the EU courts, but that deal is long since dead in reality,” Smith said. “The current deal will be reviewed on its own merits in any case.”

With a full phase 2 merger investigation a likely outcome here, it will be up to Vodafone and Three to convince the CMA that the benefits outweigh the reduced competition.

“We strongly believe that the proposed merger of Vodafone and Three will significantly enhance competition by creating a combined business with more resources to invest in infrastructure to better compete with the two larger converged players,” Vodafone UK CEO Ahmed Essam said in a statement. “Our commitment to invest £11 billion will build capacity to meet the exponential growth in demand for data and accelerate the roll out of Advanced 5G across the UK, delivering benefits to consumers and businesses throughout the nation.”

National security

It’s worth noting that there is in fact an additional regulatory aspect to this deal beyond competition concerns. On Wednesday, the U.K. Cabinet Office said that a 14.6 percent stake that United Arab Emirates (UAE) telecoms group called e& holds in Vodafone could pose a national security risk, and ordered a security committee to be set up at Vodafone to “oversee sensitive work that Vodafone and its group perform which has an impact on or is in respect of the national security of the United Kingdom.”

Three, meanwhile, is owned by CK Hutchison Holdings, a Hong Kong-based conglomerate that is subject to a national security law introduced by China in 2020.

“It has been clear for some time that the proposed merger will also have an additional regulatory dimension under the National Security and Investment Act given Three’s links to China via its Hong Kong ownership  — and the impact of China’s national security law in Hong Kong,” Alex Haffner, a competition partner at U.K. law firm Fladgate, said in a statement. “This allied to the UAE company e&’s recent 14.6% stake in Vodafone, which has already undergone a security review by UK government under the Act, means that the merging parties now face high level governmental as well as regulator scrutiny of the deal.”

Source link

Related posts

Pocket FM gives its writers an AI tool to transform narratives, write cliffhangers, and more

Pocket FM gives its writers an AI tool to transform narratives, write cliffhangers, and more

August 13, 2025
Waymo finally has a music experience worthy of its robotaxi

Waymo finally has a music experience worthy of its robotaxi

August 13, 2025
Previous Post

Perenco drops Etinde deal, Bowleven reconsiders plan

Next Post

High Court Blocks Deployment Of Kenya Police To Haiti

Next Post
High Court Blocks Deployment Of Kenya Police To Haiti

High Court Blocks Deployment Of Kenya Police To Haiti

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

RECOMMENDED NEWS

Rubio Threatens Bounties on Taliban Leaders Over Detained Americans

Rubio Threatens Bounties on Taliban Leaders Over Detained Americans

7 months ago
Wavinya Ndeti Denies Arrest claim in UK in Possession of Sh679M

Wavinya Ndeti Denies Arrest claim in UK in Possession of Sh679M

11 months ago
Planning completed for $4 billion bridge linking Africa and Asia, construction set to begin

Planning completed for $4 billion bridge linking Africa and Asia, construction set to begin

2 months ago
A Look at a Very Silicon Valley Approach to Repopulation

A Look at a Very Silicon Valley Approach to Repopulation

5 months ago

POPULAR NEWS

  • Ghana to build three oil refineries, five petrochemical plants in energy sector overhaul

    Ghana to build three oil refineries, five petrochemical plants in energy sector overhaul

    0 shares
    Share 0 Tweet 0
  • The world’s top 10 most valuable car brands in 2025

    0 shares
    Share 0 Tweet 0
  • Global ranking of Top 5 smartphone brands in Q3, 2024

    0 shares
    Share 0 Tweet 0
  • Top 10 African countries with the highest GDP per capita in 2025

    0 shares
    Share 0 Tweet 0
  • When Will SHIB Reach $1? Here’s What ChatGPT Says

    0 shares
    Share 0 Tweet 0
  • Privacy Policy
  • Contact

© 2023 LBNN - All rights reserved.

No Result
View All Result
  • Home
  • Business
  • Politics
  • Markets
  • Crypto
  • Economics
    • Manufacturing
    • Real Estate
    • Infrastructure
  • Finance
  • Energy
  • Creator Economy
  • Wealth Management
  • Taxes
  • Telecoms
  • Military & Defense
  • Careers
  • Technology
  • Artificial Intelligence
  • Investigative journalism
  • Art & Culture
  • Documentaries
  • Quizzes
    • Enneagram quiz
  • Newsletters
    • LBNN Newsletter
    • Divergent Capitalist

© 2023 LBNN - All rights reserved.