Vodafone has announced plans to cut 11,000 jobs as part of the company’s newly appointed CEO Margherita Della Valle’s turnaround plan.
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The UK’s Competition and Markets Authority said on Friday that Vodafone’s proposed merger with rival CK Hutchison would face an in-depth investigation unless the two mobile operators provide “meaningful solutions” to the regulator’s concerns.
Vodafone and CK Hutchison’s UK brand Three have five working days to provide their responses.
The CMA launched an investigation into the proposed tie-up back in January. In its latest update on Friday, the CMA said it was concerned the deal would significantly reduce competition, lead to higher prices for consumers and create an unfavorable environment for mobile virtual network operators.
Mobile Virtual Network Operators, or MVNOs, are a series of new network operators that have emerged over the years that use underlying infrastructure from existing telecommunications companies rather than being created from scratch.
Announced last year, the Vodafone and CK Hutchison deal will combine the two brands’ UK businesses, giving Vodafone a 51% controlling stake and leaving CK Hutchison with a minority stake. Vodafone’s UK chief executive Ahmed Essam was to lead the new entity, with three UK chief financial officers Darren Purkis appointed to the CFO position.
This breaking news is being updated.
https://www.cnbc.com/2024/03/22/uk-gives-vodafone-and-three-five-working-days-for-solutions-to-avoid-in-depth-merger-probe.html
