It would mean the third and fourth largest mobile phone networks respectively combining to create a business with 27 million customers, larger than current leaders BT, EE and Virgin Media O2.Any deal would be scrutinised by the Competition and Markets Authority .Vodafone said it would own 51% and Hutchison - which operates Three - 49% under the deal being discussed.Regulators have previously opposed mergers that would reduce the number of networks in the UK.
It found that both Vodafone and Three had in recent years delivered returns on investments that were lower than the cost of the capital they used. "While the parties might view consolidation as a way to improve returns and unlock shareholder value, we expect the CMA would be eager to protect against the risk of consumer price rises - particularly in light of the current cost-of-living crisis," he said.
"Under the status quo, it's hard to see either operator growing enough organically to get close to challenging BT and Virgin Media O2 for size in the UK.Other deals involving Virgin Media O2, TalkTalk and Sky have been speculated in recent months.
Real shame, I was considering leaving VodafoneUK to move to ThreeUK as Vodafone support is terrible. Looks like I'll need to rethink. VodafoneUK really don't care about customers
Ooh great - now when I call Vodafone they can blame someone else for the problem.
We're gonna end up with one network eventually, aren't we? Might make it easier to nationalise though.
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