LONDON (Nov 5): The US$19 billion (RM83.03 billion) merger between Vodafone and Hutchison's Three UK is likely to be given the go ahead as investment commitments outweigh concerns over competition, the British regulator said in a provisional ruling on Tuesday.

Britain's Competition and Markets Authority (CMA) said the deal could proceed if the remedies it recommends are implemented, including a legally binding commitment to invest in the roll-out of the 5G network plus short term customer protections.

The statement marks a change of tone for the anti-trust regulator, which had originally said the reduction of British networks from four to three could push up prices for customers.

But the new approach reflects the broader strategy set out by the new Labour government, which wants regulators to approve deals and corporate plans if they boost investment in the country's infrastructure and public services.

Vodafone and Three UK pledged to invest £11 billion (RM62.33 billion) in their joint network when the deal was first announced in June 2023.

The CMA said on Tuesday the deal had "the potential to be pro-competitive for the UK mobile sector".

Vodafone and Three said in response to the CMA that they now believe there is a "path to final clearance".

"The merger is a once-in-a-generation opportunity to transform the UK’s digital infrastructure — which lags significantly behind its European peers," the pair's joint statement said.

The CMA is due to make a final decision on or before Dec 7 and the parties said they would engage with the regulator before then.

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