{"id":35047,"date":"2023-07-13T08:21:56","date_gmt":"2023-07-13T07:21:56","guid":{"rendered":"https:\/\/www.ispreview.co.uk\/?p=35047"},"modified":"2023-07-13T08:21:56","modified_gmt":"2023-07-13T07:21:56","slug":"unite-raise-conflict-of-interest-concerns-over-vodafone-and-three-uk-merger","status":"publish","type":"post","link":"https:\/\/www.ispreview.co.uk\/index.php\/2023\/07\/unite-raise-conflict-of-interest-concerns-over-vodafone-and-three-uk-merger.html","title":{"rendered":"Unite Raise Conflict of Interest Concerns Over Vodafone and Three UK Merger"},"content":{"rendered":"

Unite the Union<\/a>, which has previously expressed its opposition to Vodafone<\/a> and Three UK<\/a>’s proposed merger (here<\/a>), is attempting to up the ante by pressing some of Vodafone<\/a>’s largest shareholders (e.g. Blackrock, Vanguard, Norges Bank and local authority pension funds) to take a stand, on conflict of interest grounds, at the next AGM.<\/p>\n

The deal, which would see Vodafone<\/a> hold a 51% slice of the business (Three UK<\/a> \/ CK Hutchison on 49%), has been promoted as something that would be “great for customers, great for the country and great for competition<\/em>,” while also resulting in a major \u00a311bn<\/strong> investment to upgrade the UK’s 5G<\/a> mobile (mobile broadband) infrastructure and network coverage.<\/p>\n

However, Unite and others have raised concerns about the merger, both on national security grounds, and because of reduced competition (i.e. three mobile network operators, instead of four), the accompanying risk of price increases and, naturally, the likelihood of big job losses. The union has now set out these concerns in more detail as part of their pre-briefing<\/a><\/strong> for the forthcoming Vodafone AGM on 25th July 2023<\/strong>.<\/p>\n

“Unite believe it is critical that any potential conflicts of interest relating to parties involved in the merger are addressed in a rigorous and transparent way. Therefore, we urge Vodafone investors to consider withholding support from resolutions at the company\u2019s forthcoming AGM on 25 July,<\/em>” said the union.<\/p>\n

Unite’s Concerns (Briefing Extract)<\/strong><\/span><\/p>\n

\u27a4 Research from the Balanced Economy Project has shown that prices after a Three-Vodafone merger could be up to 50% higher. Based on current average spending patterns, this means UK consumers would pay up to \u00a3300 more per year on their mobile bills.<\/p>\n

\u27a4 On top of this, price levels in European markets with only three mobile network operators (MNOs) are 20% higher on average than those with four.<\/p>\n

\u27a4 Following a merger, Three\u2019s ultimate parent company, CK Group, will become a \u201cperson of significant control\u201d over a business that will serve 40% of the UK\u2019s population. Unite has uncovered extensive collaboration between the CK Group, the Li family which controls it, and the Chinese state.<\/p>\n

\u27a4 The CK Group would also become party to Vodafone\u2019s sensitive government contracts, including with the Ministry of Justice, and strategic national assets in the form of Vodafone\u2019s subsea communications cables, which link the UK to global communication networks.<\/p><\/blockquote>\n

Unite says they’ve already been in contact with major Vodafone shareholders, including Blackrock, Vanguard, Norges Bank and local authority pension funds. The union is asking them to vote against the re-election of David Nish, and the remuneration policy, on conflict-of-interest grounds (they’ve also been in touch with proxy voting advisors Glass Lewis and ISS). But whether any of this will have a meaningful impact is yet to be seen. Vodafone has been asked to comment.<\/p>\n","protected":false},"excerpt":{"rendered":"

Unite the Union, which has previously expressed its opposition to Vodafone and Three UK’s proposed merger (here), is attempting to up the ante by pressing some of Vodafone’s largest shareholders (e.g. Blackrock, Vanguard, Norges Bank and local authority pension funds) to take a stand, on conflict of interest grounds, at the next AGM.<\/p>\n","protected":false},"author":1,"featured_media":34985,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"ngg_post_thumbnail":0,"footnotes":""},"categories":[1],"tags":[472,36,38,479,63,96],"class_list":["post-35047","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uk_isp_news","tag-business","tag-ofcom-regulation","tag-politics","tag-security","tag-three-uk","tag-vodafone"],"share_on_mastodon":{"url":"","error":""},"yoast_head":"\nUnite Raise Conflict of Interest Concerns Over Vodafone and Three UK Merger - ISPreview UK<\/title>\n<meta name=\"description\" content=\"Unite the Union, which has previously expressed its opposition to Vodafone and Three UK's proposed merger (here), is attempting to up the ante by pressing\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.ispreview.co.uk\/index.php\/2023\/07\/unite-raise-conflict-of-interest-concerns-over-vodafone-and-three-uk-merger.html\" \/>\n<meta property=\"og:locale\" content=\"en_GB\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Unite Raise Conflict of Interest Concerns Over Vodafone and Three UK Merger - 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