The proposed $19 billion merger between Vodafone and CK Hutchison to create Britain's largest mobile operator will face regulatory scrutiny from the country's Competition and Markets Authority (CMA).
The deal, which reduces the number of networks from four to three, challenges the belief that four networks help keep prices low in major markets. Hutchison had attempted to buy Telefonica's O2 network seven years ago, but the deal was blocked by the European Commission on the grounds that it would damage competition.
Analysts have said that the companies will need to demonstrate how the merger is in the interest of the UK economy and consumers, and that securing regulatory approval could be a challenge due to concerns over diminished competition and consumer choice.
The CMA will also need to approve the deal under a National Security and Investment Act, which gives the British government powers to intervene in deals that could pose a risk.
