The merger of Vodafone Group PLC (NASDAQ:VOD) and CK Hutchison Holdings Ltd (OTC:CKHUY) (OTC:CKHUF) UK telecommunication businesses has reportedly come under the scrutiny of UK’s Competition and Markets Authority (CMA).
After months of speculation, the companies officially disclosed the merger of their UK businesses yesterday.
Post-merger of Vodafone UK and Three UK, Vodafone will own 51% of the combined business, and CKHGT will have the remaining 49%.
As per Reuters, the companies will need approval under a National Security and Investment Act, which provides the British government powers to intervene in deals, posing a risk.
The report cited analyst Paolo Pescatore at PP Foresight, showing concern about the probability of the merger getting a green flag from the authorities, given both companies’ UK businesses have been outperforming the market.
Notably, the UK telecom regulator and EU authorities opposed Hutchison’s deal with Telefonica SA (NYSE:TEF) years ago.
Also, in April, CMA blocked the merger of Microsoft Corp (NASDAQ:MSFT) and Activision Blizzard Inc (NASDAQ:ATVI).
Also Read: Microsoft’s Appeal Of UK Regulator’s Block Of Activision Blizzard Acquisition Set For July
Price Action: VOD shares are trading higher by 1.19% at $9.35 premarket on the last check Thursday.
