Vodafone considers T-Mobile bid

| June 29, 2009 | 0 Comments

Vodafone, the mobile phone operator, is considering buying T-Mobile UK, which would create the UK’s largest mobile operator.

Both companies have declined to comment but reports say Vodafone is interested in acquiring T-Mobile after it was placed on the market by its owner, Deutsche Telekom.

However, The Financial Times has reported that the deal may not approved by regulators. As well as being bound by normal competition rules, the industry is regulated by Ofcom, which is investigating the charges that operators levy customers for connecting to other networks.

A merger of the two companies would result in a 40% market share in the UK. T-Mobile currently own has a 15% market share, while Vodafone has 25%. The current market leader, O2, currently has a share of around 27%.

Last month, Vodafone announced a £1 billion cost-cutting programme after it was forced to write off £5.9 billion in the year to the end of March - due to its Spanish business. It also took a £500 million hit on its Turkish division as the global economic downturn resulted in a fall in sales.

Following the news, Vodafone shares gained 0.6%.

Tags: T-Mobile UK,

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