The UK's Competition and Markets Authority (CMA) has initiated a formal investigation into the proposed $19 billion merger between Vodafone and CK Hutchison-owned Three UK. The CMA will have up to 40 working days to assess the deal during the Phase 1 investigation, aiming to determine if the merger may lead to a substantial lessening of competition. If necessary, a more in-depth Phase 2 investigation will be conducted.
The merger between Vodafone UK and Three UK, with Vodafone holding a 51% stake and CK Hutchison 49%, is considered a significant consolidation in the UK telecommunications market. The CMA is inviting views on how the merger might impact competition until February 9, and the statutory deadline for the investigation is March 22.
CMA Chief Executive Sarah Cardell emphasized the importance of assessing how the tie-up between rival networks could affect competition in the UK telecommunications sector. If the CMA finds that the merger could substantially lessen competition, it has the authority to refer it for a more detailed Phase 2 investigation, which typically lasts between 24 and 32 weeks and is led by an independent panel of experts.
(With Agency Inputs)
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