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UK watchdog refers Vodafone, Three deal to in-depth probe
Global Banking & Finance Review®
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(Reuters) -Britain’s competition regulator said on Thursday it would need to open an in-depth investigation into the merger between Vodafone’s UK operation and Hutchison’s Three UK after the parties did not offer remedies to ease the regulator’s competition concerns.
(Reuters) -Britain’s competition regulator said on Thursday it would need to open an in-depth investigation into the merger between Vodafone’s UK operation and Hutchison’s Three UK after the parties did not offer remedies to ease the regulator’s competition concerns.
The $19 billion tie-up, which was announced last year, will reduce the number of networks from four to three, challenging the long-held tenet that four help keep prices low.
The UK’s Competition and Markets Authority (CMA) said last month the deal risked leaving consumers worse off and asked the companies to respond with “meaningful solutions” to its concerns that the merger will result in higher prices for consumers and businesses and lower investment.
“On 28 March 2024, the Parties informed the CMA that they would not be offering any undertakings,” the regulator said in a statement on Thursday.
(Reporting by Yadarisa Shabong in Bengaluru; Editing by Janane Venkatraman)
A merger is a business combination where two companies join to form a single entity, often to enhance competitiveness and efficiency.
Competition concerns arise when a merger or acquisition may reduce competition in a market, potentially leading to higher prices or reduced services for consumers.
Remedies refer to solutions proposed by merging parties to address regulatory concerns, such as divesting parts of the business or altering the merger terms.
Consumer protection involves laws and regulations designed to ensure the rights of consumers are upheld, preventing unfair practices and promoting fair competition.
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