Vodafone Group Public Ltd Co 6-K, filed Sep 13, 2024
Vodafone Group Public Ltd Co (VOD)
6-K
2024-09-13
For: 2024-09-13
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Added on
April 11, 2026
About this 6-K
Vodafone Group Public Ltd Co filed this 6-K on September 13, 2024.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 6-K
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULES 13a-16 OR 15d-16 UNDER
THE SECURITIES EXCHANGE ACT OF 1934
Dated
September 13, 2024
Commission
File Number: 001-10086
VODAFONE GROUP
PUBLIC LIMITED COMPANY
(Translation
of registrant’s name into English)
VODAFONE
HOUSE, THE CONNECTION, NEWBURY, BERKSHIRE, RG14 2FN,
ENGLAND
(Address
of principal executive offices)
Indicate
by check mark whether the registrant files or will file annual
reports under cover Form 20-F or Form 40-F.
Form
20-F ✓
Form 40-F _
This
Report on Form 6-K contains a Stock Exchange Announcement dated 13
September 2024 entitled ‘VODAFONE & THREE RESPONSE CMA
PROVISIONAL FINDINGS’.
VODAFONE & THREE RESPONSE TO CMA PROVISIONAL
FINDINGS
13 September 2024
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The Vodafone/Three
merger is a once-in-a-generation opportunity to transform UK
digital infrastructure with £11bn of investment
●
Vodafone and Three
UK disagree with the CMA’s Provisional Findings that their
merger raises competition concerns and could lead to price rises
for customers
●
By all measures,
the merger is pro-growth, pro-customer and pro-competition. It can,
and should, be approved by the CMA
●
This is not a final
decision, and we look forward to working with the CMA to secure
approval
The
combination of Vodafone and Three will fix the country’s
dysfunctional mobile market characteristics, unleashing more
competition and investment.
Opensignal
analysis sets out the current reality: the UK ranks 22nd out of 25 European
countries for 5G availability and speed and has the slowest data
speeds amongst the G7.
The
merger of Vodafone and Three will transform this current reality,
bringing best-in-class 5G to every community, school and hospital
in the country. The CMA also recognises that the merger would
improve network quality. We will continue to work with them to
demonstrate the merged company will deliver in full on the
committed network investment.
Vodafone
and Three disagree with a number of elements in today’s
Provisional Findings. A final decision is not due until 7 December,
and we will continue to positively engage with the CMA and look to
resolve outstanding matters.
Margherita
Della Valle, Vodafone’s Chief Executive, said: “Our merger is a catalyst for change.
It’s time to take off the handbrake on the country’s
connectivity and build the world-class infrastructure the country
deserves. We are offering a self-funded plan to propel economic
growth and address the UK’s digital
divide.
“Great network connectivity is a critical enabler of so many
elements of our daily life and is central to the future prospects
of so many sectors. Businesses large and small are dependent on it
and it enables new industries – like AI – to thrive. It
facilitates a step change in productivity and care across the
public sector, and it lies at the heart of every nation’s
future prosperity.”
Transforming
the UK’s telecoms infrastructure is vitally important for
businesses, the public sector, the UK’s technological
advancement, and the government’s stated mission to kickstart
economic growth1.
50 million customers directly benefit from improved network
quality
The
merger will extend the network quality benefits well beyond the
merged company’s own customer base to VMO2’s customers
- delivering better quality, enhanced capacity and greater coverage
to over 50 million mobile customers across the country. We are
encouraged by the fact that the Provisional Findings acknowledge
that our agreement with VMO22 “will provide a notable and rapid
increase in network quality for its wholesale and retail
customers”3.
1 Kickstart
economic growth – The Labour Party
2 https://www.vodafone.com/news/corporate-and-financial/vodafone-and-virgin-media-o2-announce-new-long-term-network-sharing-agreement
3 Para 62,
Summary of Provisional Findings
Pricing
We do
not agree with the CMA’s provisional finding that prices will
increase. From the outset, we have been very clear that the merger
will not affect our pricing strategy and that all social tariffs
will continue to protect the vulnerable.
Importantly,
the investment case underpinning the merger is not based on
hypothetical price increases and the CMA’s price rise
assumptions are contrary to the business and investment plans the
Parties have signed up to for the merged company.
Prices
will either stay broadly the same or actually drop post-merger as a
result of the vastly enhanced competitive pressures between Mobile
Network Operators and MVNOs, who will also benefit from the
merger.
MVNOs
We
disagree that this merger will adversely affect the wholesale
market. Today 90% of the UK’s MVNOs rely on either VMO2 or
BTEE as their wholesale provider. A combined, stronger network
would significantly boost competition in the wholesale market by
giving MVNOs more choice and better quality from three scaled
wholesale network providers.
Working with the CMA on the way forward
We are
reviewing the Notice of Possible Remedies and look forward to
working constructively with the CMA on the different options
proposed. We are confident we can address their
concerns.
We have
made clear we are committed to delivering our £11 billion
investment plan and best-in-class network which locks in the
transaction’s benefits and addresses the CMA’s
provisional concerns. We are willing for this commitment to be
monitored independently and enforced by Ofcom.
By all
measures, this merger is pro-growth, pro-customer, pro-investment
and pro-competition. It can, and should, be approved by the
CMA.
Robert
Finnegan, Chief Executive of Three UK, said: “The current UK 4 player mobile market
is dysfunctional and lacks quality competition with 2 strong
players and 2 weak players. This is reflected in the current state
of the UK’s digital infrastructure that everyone agrees falls
well short of what the country needs and deserves. We are
determined to reassure the CMA in relation to their provisional
concerns and work with them to secure the extensive benefits this
merger brings for UK customers, businesses and wider
society.”
For more information, please contact:
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Vodafone Investor Relations
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Vodafone Media Relations
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Three UK Media Relations
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Investors.vodafone.com
ir@vodafone.co.uk
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Vodafone.com/media/contact
GroupMedia@vodafone.com
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Ed Cropley at Teneo
+44 7942 949 346
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Vodafone
Registered Office: Vodafone House, The Connection, Newbury,
Berkshire RG14 2FN, England. Registered in England No.
1833679
SIGNATURES
Pursuant
to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf
by the undersigned, thereunto duly authorised.
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VODAFONE
GROUP
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PUBLIC
LIMITED COMPANY
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(Registrant)
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Date:
September 13, 2024
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By: /s/ M D B
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Name: Maaike de Bie
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Title: Group General Counsel and Company Secretary
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