The UK Competition and Markets Authority (CMA) has given final approval for the merger of Virgin Media and O2 UK, following provisional approval in April. It has cleared the deal without remedies. The merger was originally announced in May 2020.
Both companies provide wholesale services to mobile operators in the UK, and the CMA was initially concerned that the merger would result in higher prices or lower quality of these wholesale services. Following an in-depth Phase 2 investigation, the CMA has concluded that the deal is unlikely to have a substantial negative impact on competition, with competition between mobile communications providers remaining strong.
Liberty Global and Telefonica, parent companies of Virgin Media and O2 UK, welcomed final UK regulatory approval for the deal. In a statement, they said the deal is now expected to close by 01 June. They expect the joint venture to deliver synergies worth GBP 6.2 billion on a net present value basis after integration costs. It will create a UK-wide integrated communications provider with total revenue of GBP 11 billion.
