On Wednesday, Vodafone and Three UK mobile network’s parent Company CK Hutchison announced the £15 billion ($19 billion) merger between the UK businesses of the two companies aiming to create a new market leader that would drive competition and investment in the country. The merger is expected to complete before the end of 2024.

The companies revealed that they have been in talks since October last year. The long-awaited deal will now be subjected to prolonged scrutiny by UK’s Competition and Markets Authority (CMA) into whether an operator with 27 million customers can damage competition. 

The merger will reduce the number of mobile operators in the country to just three after significant consolidation in the telecommunications sector in the past few years. The two groups would invest 11 billion pounds in Britain over 10 years to make the deal seem more appealing to the regulators.

Current Vodafone UK CEO Ahmed Essam will lead the new enterprise. At the same time, Chief Financial Officer (CFO) position at the merged business will be assumed by the present Three UK CFO Darren Purkis.

Following the merger, Vodafone will own a 51% controlling stake and Hutchison a minority stake of 49% of the combined business.