KUALA LUMPUR, July 29 (Bernama) -- Bursa Malaysia rebounded to close higher on Wednesday on selective buying of defensive stocks after a volatile trading session. IPPFA Sdn Bhd director of investment strategy and country economist Mohd Sedek Jantan said consumer products and services stocks lifted the key index higher, overcoming lingering geopolitical concerns. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) rose 3.08 points to 1,715.56 from yesterday’s close of 1,712.48. The benchmark index, which opened 1.91 points higher at 1,714.39, moved between 1,710.79 and 1,720.59 during the day’s trading. In the broader market, gainers outstripped decliners 550 to 476, while 612 counters were unchanged, 1,129 untraded, and 48 suspended. Turnover rose to 2.96 billion units valued at RM2.48 billion from 2.94 billion units valued at RM2.56 billion on Tuesday.
The UK Competition and Markets Authority (CMA) has raised concerns that the proposed $19 billion merger between Vodafone and Three UK could lead to higher bills for millions of mobile customers. The consolidation would reduce the number of major networks from four to three, potentially impacting providers like Sky Mobile.
However, the CMA also acknowledged that the deal might improve network quality and accelerate the rollout of next-generation 5G services. The regulator plans to explore possible remedies to address these concerns before making a final decision in December.
Announced 15 months ago, the merger between Vodafone and Three UK, owned by Hong Kong’s CK Hutchison, challenges the regulator's previous stance that maintaining four networks is essential for keeping prices low. Both companies argue that combining forces would create a stronger third player in the market, better equipped to compete with leaders BT’s EE and Virgin Media O2.
"We will now consider how Vodafone and Three might address our concerns about the likely impact of the merger on retail and wholesale customers while securing the potential longer-term benefits of the merger, including by guaranteeing future network investments," stated CMA inquiry chair Stuart McIntosh.
Vodafone and Three have expressed their disagreement with the CMA’s view that the merger poses competition concerns and could result in price increases for customers. "This is not a final decision, and we look forward to working with the CMA to secure approval," they said in a joint statement.
The CMA's suggested remedies include a commitment to network investment—though it noted that this might not be sufficient to address all concerns. Other potential solutions involve protections for customers, such as allowing them to retain their existing terms for a defined period, and measures in the wholesale market to ensure that third-party providers like Lyca Mobile, Sky Mobile, and Lebara can continue to operate effectively. The regulator also suggested that a portion of the merged company's capacity could be allocated specifically to these providers.
Barclays analysts described the proposed remedies as "broadly manageable." Meanwhile, shares in Vodafone were up by 0.2% in early trading, reflecting cautious optimism about the merger's potential benefits.
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