Vodafone has announced plans to cut 11,000 jobs as part of a turnaround plan by newly appointed chief executive Margherita Della Valle.
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Britain’s Competition and Markets Authority said on Friday Vodafone’s proposed merger with rival CK Hutchison will face an in-depth investigation unless the two mobile operators provide “meaningful solutions” to the regulator’s concerns.
Vodafone and CK Hutchison’s British brand Three have five working days to provide answers.
The CMA launched an investigation into the proposed collaboration back in January. In its latest update on Friday, the CMA said it was concerned the deal would lead to a significant reduction in competition, lead to higher prices for consumers and create an unfavorable environment for mobile virtual network operators.
Mobile Virtual Network Operators (MVNOs) are a large group of new network operators that have emerged over the years and use the underlying infrastructure of existing telecommunications companies rather than creating one from scratch.
announced last yearThe Vodafone and CK Hutchison deal will combine the UK operations of both brands, with Vodafone taking a 51% controlling stake and CK Hutchison taking a minority stake. Vodafone UK chief executive Ahmed Essam will run the new company, with Three UK finance chief Darren Purkis becoming chief financial officer.
This breaking news story is being updated.
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