Vodafone Group, Three Offer to Cap Retail Prices to Allay Regulator's Merger Concerns

By Najat Kantouar

Vodafone Group and Three UK offered to cap prices for retail customers for two years after their proposed merger, in a bid to address concerns on the deal raised by the U.K.'s antitrust authority.

The companies said will commit to maintaining tariffs at 10 pounds ($13.38) or below for two years from the completion of the merger for value-focused customers on the SMARTY brand, and continue measures to protect registered vulnerable customers.

Vodafone and Three--owned by Hong Kong's CK Hutchison Holdings--also said they would provide a reference offer that encourages wholesale customers to access their additional network capacity.

The commitments come after the U.K.'s Competition and Markets Authority said earlier this month that the deal could result in higher prices for tens of millions of mobile customers in the U.K. and not necessarily lead to higher network investments.

"Vodafone and Three disagree with the CMA's Provisional Findings. Our merger will be pro-growth, pro-customer, pro-investment and pro-competitive for the UK. It is a once-in-a-generation opportunity to transform U.K digital infrastructure with GBP11 billion ($14.72 billion) of network investment" Vodafone said.

The companies said they will continue to engage with regulators. The CMA is due to make a final decision by Dec. 7.

Write to Najat Kantouar at najat.kantouar@wsj.com

(END) Dow Jones Newswires

September 30, 2024 06:26 ET (10:26 GMT)

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