{"id":37074,"date":"2024-02-05T21:17:01","date_gmt":"2024-02-05T21:17:01","guid":{"rendered":"https:\/\/www.ispreview.co.uk\/?p=37074"},"modified":"2024-02-05T21:17:01","modified_gmt":"2024-02-05T21:17:01","slug":"vodafone-confirm-three-uk-merger-under-national-security-probe","status":"publish","type":"post","link":"https:\/\/www.ispreview.co.uk\/index.php\/2024\/02\/vodafone-confirm-three-uk-merger-under-national-security-probe.html","title":{"rendered":"Vodafone Confirm Three UK Merger Under National Security Probe"},"content":{"rendered":"<p>The CEO of <a href=\"https:\/\/www.ispreview.co.uk\/index.php\/go\/vodafoneuk\" rel=\"nofollow\" target=\"_blank\">Vodafone<\/a> Group, Margherita Della Valle, has revealed that their proposed mega-merger with <a href=\"https:\/\/www.ispreview.co.uk\/index.php\/go\/threeuk\" rel=\"nofollow\" target=\"_blank\">Three UK<\/a> (CK Hutchison) is being reviewed by the Government under the National Security and Investment Act 2021, which reports suggest is linked to CKH&#8217;s perceived ties to China and any potential risks of access to sensitive national infrastructure.<!--more--><\/p>\n<p>The issue of security is one that has come up a few times before, with some MPs being particularly concerned (<a href=\"https:\/\/www.ispreview.co.uk\/index.php\/2023\/09\/security-concerns-dominate-uk-parliament-debate-on-vodafone-and-three-merger.html\">here<\/a>), although until now there has been no solid confirmation that the merger might end up being subject to a review under the new NSIA (or NSA, as some term it).<\/p>\n<div class=\"bq2\"><strong>NOTE:<\/strong> The merger, if approved, would see <a href=\"https:\/\/www.ispreview.co.uk\/index.php\/go\/vodafoneuk\" rel=\"nofollow\" target=\"_blank\">Vodafone<\/a> retain a 51% slice of the business and CK Hutchison (<a class=\"shortlink shortlink-80\" title=\"three uk\" href=\"https:\/\/www.ispreview.co.uk\/index.php\/go\/threeuk\" target=\"_blank\" rel=\"nofollow noopener\">Three UK<\/a>) hold 49%. But there&#8217;s talk of diluting the Chinese share over time.<\/div>\n<p>The government has similarly been trying to avoid scenarios in which countries like China secure key positions in critical national infrastructure, such as telecoms. On the flip side, CKH may well point out that they already control some UK ports and power networks, although telecoms is generally considered to be a much more sensitive topic.<\/p>\n<p>According to the <a href=\"https:\/\/www.telegraph.co.uk\/business\/2024\/02\/05\/national-security-investigation-merger-vodafone-three\/\" target=\"_blank\" rel=\"noopener\">Telegraph<\/a> (paywall), <a href=\"https:\/\/www.ispreview.co.uk\/index.php\/go\/vodafoneuk\" rel=\"nofollow\" target=\"_blank\">Vodafone<\/a>&#8217;s CEO was today asked directly whether the UK Government would be reviewing the merger under the NSIA and the answer came back.. &#8220;<em>Yes, absolutely<\/em>.&#8221; The review is said to be progressing &#8220;<em>as planned<\/em>&#8220;, although what will really matter is the outcome.<\/p>\n<blockquote class=\"bq1\"><p><strong>Margherita Della Valle said:<\/strong><\/p>\n<p>&#8220;As with all similar deals, we are engaged in the NSA process for the merger between Vodafone and Three. [Both companies have been subjected to] very strict protocol in terms of data protection law [and] telecoms security regulations &#8230; I think it proves the rigorous protocols we are all under and constitutes a model that is applicable for different situations.\u201d<\/p><\/blockquote>\n<p>The reality, we suspect, is that this review probably won&#8217;t cause a serious obstruction to the proposed merger. In fact, the Government recently raised (<a href=\"https:\/\/www.ft.com\/content\/cbbfc2bc-7034-4be3-92f0-edc2f14adf14\" target=\"_blank\" rel=\"noopener\">here<\/a>) a not dissimilar concern about the risk of a 14.6% stake in Vodafone that was being held by a United Arab Emirates (UAE) group called <em>e&amp;<\/em> (no, that&#8217;s not a typo).<\/p>\n<p>In response to concerns over a national security risk, the Government ordered Vodafone and e&amp; to address the matter by establishing a special committee to oversee any work that may have a bearing on British security, as well as some additional transparency measures. Something similar may end up being expected as part of the proposed merger.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The CEO of Vodafone Group, Margherita Della Valle, has revealed that their proposed mega-merger with Three UK (CK Hutchison) is being reviewed by the Government under the National Security and Investment Act 2021, which reports suggest is linked to CKH&#8217;s perceived ties to China and any potential risks of access to sensitive national infrastructure.<\/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":[472,38,479,63,96],"class_list":["post-37074","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uk_isp_news","tag-business","tag-politics","tag-security","tag-three-uk","tag-vodafone"],"share_on_mastodon":{"url":"https:\/\/mastodon.social\/@ispreview\/111880956974256817","error":""},"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.2 - 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