VOD - Vodafone and Three UK Merger Faces CMA Scrutiny Over Competition Concerns | Benzinga
Vodafone U.K., a subsidiary of Vodafone Group Plc (NASDAQ:VOD), and Three U.K., owned by CK Hutchison Holdings Limited, announced last year a joint venture that would consolidate their 27 million customers under one network provider.
This move prompted the Competition and Markets Authority (CMA) to initiate a Phase 1 investigation in January to determine the potential for a “substantial lessening of competition” that could impact U.K. consumers and businesses.
Last June, Vodafone Group struck a merger agreement with CK Hutchison Group Telecom Holdings Limited (CKHGT), a subsidiary of CK Hutchison Holdings Ltd, to combine their U.K. telecommunications operations. Following the merger of Vodafone U.K. and Three U.K., Vodafone will hold a 51% stake in the newly formed entity, while CKHGT will own the other 49%.
According to the agreement, Vodafone U.K. will contribute £4.3 billion, and Three U.K. will add £1.7 billion to secure its ...