The Competition and Markets Authority (CMA) has given the green light for the £15 billion ($19 billion) merger between Vodafone and Three.

The CMA said on Thursday that the deal can go ahead if both companies sign binding commitments to invest in upgrading the merged company’s network across the UK, including the deployment of a combined 5G network.

The deal, first announced two years ago, will create the largest mobile network operator in the UK, consolidating the number of network operators from four to three. The new group will have around 29 million customers.

The networks have also agreed on shorter-term customer protection committing to cap certain mobile tariffs and offer pre-defined contract terms to mobile virtual network operators for three years to guarantee that virtual network providers can secure competitive terms and conditions while the network is being implemented.

The merger approval comes after the CMA conducted an 18-month investigation into the proposal, provisionally approving the deal last month subject to certain conditions being met.

In September, an independent inquiry group leading the in-depth Phase 2 investigation of the merger raised concerns that the deal could harm competition, with the probe finding that the merger could lead to higher prices for customers and less advantageous terms for virtual network providers.

After the publication of these outcomes, the independent inquiry group examined how to resolve its concerns and in November published a working paper on corrective measures that included a number of potential options.

Since then, the inquiry group has analysed the responses to the working paper and engaged extensively with participants.

The group has also sought further input from Ofcom, the communications regulator.

The implementation of these commitments will be overseen by Ofcom and the CMA throughout their duration.

Stuart McIntosh, chair of the independent inquiry group leading the investigation, emphasised that it is crucial the merger doesn’t harm competition.

“Having carefully considered the evidence, as well as the extensive feedback we have received, we believe the merger is likely to boost competition in the UK mobile sector and should be allowed to proceed, but only if Vodafone and Three agree to implement our proposed measures,” he added.

The merger is expected to go complete in the first half of 2025.

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