UK gives Vodafone and Three five working days for solutions to avoid in-depth merger probe

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The CMA said it was concerned the deal would lead to a substantial lessening of competition and result in higher prices for consumers.

The U.K.'s Competition and Markets Authority on Friday said Vodafone's proposed merger with rival CK Hutchison will face an in-depth probe, unless the two mobile operators provide "meaningful solutions" to the regulator's concerns.In its latest update on Friday, the CMA said it was concerned the deal would lead to a substantial lessening of competition and result in higher prices for consumers.

Vodafone announced plans to cut 11,000 jobs as part of a turnaround plan from the company's newly-appointed CEO Margherita Della Valle.The U.K.'s Competition and Markets Authority on Friday said Vodafone's proposed merger with rival CK Hutchison will face an in-depth probe, unless the two mobile operators provide "meaningful solutions" to the regulator's concerns.The CMA opened a probe into the proposed tie-up.

Mobile virtual network operators, or MVNOs, are a spate of new network operators that have cropped up over the years that use underlying infrastructure from existing telcos, rather than being created from scratch., Vodafone and CK Hutchison's transaction would merge the two brands' U.K. businesses, giving Vodafone a 51% controling stake and leaving CK Hutchison with the minority interest.

 

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