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The proposed merger of Vodafone Group PLC’s UK business with CK Hutchison Holdings Ltd’s Three UK has been cleared by the UK government, under the National Security and Investment Act. The Cabinet Office in a ‘final order’ said the secretary of state had approved the proposal subject to conditions. These include the establishment of a national security committee within the combined entity to ‘oversee sensitive work,’ and establishment of a technical group within the National Security Committee which will monitor a specified list of topics relating to cyber, physical and personnel security. The Secretary of State considers that these measures mitigate any risks to national security. In April, the UK’s competition watchdog said the proposed merger would be the subject of a more in-depth probe. The Competition & Markets Authority said any measures to soothe antitrust concerns were not offered to the regulator. In a joint statement, Vodafone and Three UK said: ‘We are pleased our proposed joint venture has been approved by the Government under the National Security and Investment Act. ‘We are continuing to engage collaboratively with the Competition & Markets Authority to inform its ongoing review of our merger, which we strongly believe will strengthen competition in the UK‘s mobile sector and enable a significant step-up in the UK’s mobile network infrastructure.’ Vodafone and CK Hutchison announced plans in June to combine the UK businesses into a joint venture, with Vodafone to own 51% and CK Hutchison 49% of the combined operation. This would bring their roughly 27 million customers under a new, single network provider. Shares in Vodafone closed up 1.1% at 68.30 pence in London on Thursday. Copyright 2024 Alliance News Ltd. All Rights Reserved.
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