The Competition and Markets Authority (CMA) of the United Kingdom earlier announced the preliminary investigation results of the merger application between Vodafone UK and 3 UK, indicating that the merger may lead to millions of customers paying more fees and that the incentive for the merged company to continue investing is unclear. However, the transaction can improve network quality and accelerate the deployment of the next-generation 5G. The final decision on the transaction will be made in December after studying the solutions submitted by both companies.

Vodafone UK and 3 UK disagree with the CMA's view that the merger will intensify competition and may lead to increased user fees. CKH Holdings (00001.HK), the parent company of 3 UK, believes that the merger is a once-in-a-lifetime opportunity to bring £11 billion in network investment to the UK, support the digital transformation of UK telecommunications infrastructure, and will continue to cooperate with the CMA, expecting to obtain approval for the merger proposal. The merger of Vodafone UK and 3 UK can rectify the operational malfunction in the UK's mobile telecommunications market and unleash more competition and investment.

3 UK also stated that it is reviewing the Notice of Feasible Remedies and will engage in constructive communication with the CMA on different options, with confidence in alleviating their concerns. At the same time, it has made it clear that it will fulfill the £11 billion network investment plan and establish a first-class mobile network, and is willing to be independently supervised and implemented by the UK Communications Authority to ensure these commitments.

Robert Finnegan, CEO of 3 UK, said that the current mobile telecommunications market in the UK lacks quality competition and is not operating effectively. It is also widely believed that the current digital infrastructure in the UK falls far short of demand and has not reached the required level, and there is a determination to dispel the CMA's concerns about the merger. (vc/u)

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