British regulators approve $19 billion Vodafone-Three mobile merger
British regulators said the tie-up can proceed if both companies sign "binding commitments to invest billions" to roll out a 5G network across the U.K.
Britain's competition regulator on Thursday approved the merger between telecommunication firms Vodafone and Three in the U.K., subject to certain conditions.
The Competition and Markets Authority (CMA) said the £15 billion ($19 billion) tie-up should be allowed to proceed if both companies sign "binding commitments to invest billions" to roll out a combined 5G network across the U.K.
The combined entity would also be required to cap certain mobile tariffs and "offer preset contractual terms" to so-called mobile virtual network operators (MVNOs) — mobile operators that piggyback off of another company's network.
Vodafone and CK Hutchison, the owner of the Three U.K. network, announced the transaction last year. The deal, now approved, will merge the two brands' U.K. businesses, giving Vodafone a 51% controlling stake and leaving CK Hutchison with the minority interest.