British regulator says $19.5 billion Vodafone-Three merger could go ahead if remedies are adopted

LONDON — British telecom firms Vodafone and Three's multibillion-pound merger could go ahead if the companies adopt a series of proposed remedies to clear competition concerns, regulators said Tuesday.

In a statement, the Competition and Markets Authority said that the £15 billion ($19.5 billion) deal is likely to be approved, if Vodafone and Hong Kong-based CK Hutchison's Three proceed with billions of pounds of investment into British telecom infrastructure and add short-term customer protections.

Vodafone has previously said that the combined entity, once merged, would invest £11 billion ($14.46 billion) into U.K. telecommunications infrastructure.

Among the conditions required for the deal to go through are:

Stuart McIntosh, chair of the CMA inquiry group leading the investigation, said the regulator believes the Vodafone-Three merger has the potential to be "pro-competitive" for the U.K. mobile sector, if its concerns are addressed.

"Our provisional view is that binding commitments combined with short-term protections for consumers and wholesale providers would address our concerns while preserving the benefits of this merger," McIntosh said in a statement Tuesday.

Vodafone and Three hold that the CMA's remedy framework "provides a path to final clearance," a Vodafone spokesperson told CNBC via email Tuesday.

"The merger will be a catalyst for positive change. It will bring significant benefits to businesses and consumers throughout the UK, and it will bring advanced 5G to every school and hospital across the country," the Vodafone spokesperson said.

The CMA said its final decision on the merger is due by Dec. 7.

The CMA provisionally found in September that the Vodafone-Three merger could lead to higher prices for customers