The proposed £15 billion merger between Vodafone Group (LSE: VOD) and Three UK faces another delay as the Competition and Markets Authority (CMA) extends its investigation period. The CMA has now set a new deadline of 7 December to complete its probe and publish findings on the deal that would create the UK’s largest mobile phone network.
The watchdog explained that the extension reflects the “very wide scope” of the inquiry and the “technical and regulatory complexity” of the telecommunications sector. The CMA also needs more time to examine the large amounts of evidence provided by both companies.
This merger, first announced last summer, has been under close scrutiny from the start. The CMA previously voiced concerns that the union of two major mobile networks could potentially harm smaller ‘virtual’ operators like Sky Mobile, Lebara, and Lyca Mobile, making it harder for them to negotiate favourable deals for their customers.
Vodafone responded to the delay, stating that such extensions are “not unusual” in complex investigations. The company maintains that the merger would benefit over 50 million mobile customers, boost competition, and improve the UK’s digital infrastructure.
If approved, the combined Vodafone-Three entity would compete directly with BT Group’s EE and Virgin Media-O2. Both Vodafone and Three argue that joining forces would enable them to increase investment in their services and enhance their competitive position.
Despite the ongoing uncertainty surrounding the merger, Vodafone’s share price has shown minimal movement. Year to date, Vodafone shares have seen a small 3.1% gain, closing at 71.94 pence on Friday in London trading.
The outcome of this investigation could significantly reshape the UK’s mobile market, potentially impacting major players, smaller operators, and consumers alike.
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