Vodafone Group PLC (LSE:VOD) and Three’s £15 billion merger has inched closer to being cleared after the UK’s competition watchdog signalled remedies could see the tie-up approved.
A Remedies Working Paper was published on Tuesday, the Competitions and Markets Authority (CMA) said.
“It provisionally finds that a legally binding commitment to undertake the network integration and investment programme proposed by Vodafone and Three would significantly improve the quality of the merged company’s mobile network, boosting competition between mobile network operators in the long term and benefiting millions of people who rely on mobile services,” a statement added.
The regulator had previously signalled the deal could hurt competition and drive up consumer bills.
Three and Vodafone welcomed the CMA’s findings, noting these provided a “path to final clearance”.
“The merger is a once-in-a-generation opportunity to transform the UK’s digital infrastructure – which lags significantly behind its European peers – and for more than 50 million UK customers to benefit,” they said.
Vodafone climbed 1.6% on Tuesday.