Tesco Workers Trapped in Forced Labour

 

In a factory at the Myanmar border in Thailand, hundreds of Burmese workers made F&F jeans for Tesco. They describe sweatshop conditions, with 99-hour weeks, one day off a month and illegally low pay. Now Tesco is facing a landmark British lawsuit for alleged negligence, having used the VK Garment (VKG) factory in Mae Sot as a supplier to its Thai business from 2017 until the supermarket sold its operations in Asia in December 2020. The case is being brought by 130 former garment workers at the factory. Tesco said protecting the rights of everyone in its supply chain was absolutely essential and that had it known of the serious allegations it would have stopped using VKG immediately. It is believed to be the first time a UK company has been threatened with litigation in the English courts over a foreign garment factory in its supply chain that it does not own. Tesco was not involved in the day-to-day running of the factory beyond setting and checking standards and placing orders. Tesco made £2.2bn profits in 2020, the last year that its Thai business used VKG. Labour experts say large clothing brands such as F&F deliberately outsource the production of clothes and the auditing of factories to avoid liability and reputational damage while keeping prices cheap and protecting profits.

Tesco Labour Investigation

JD Sells 15 Brands

Mike Ashley’s Frasers Group has snapped up a basket of 15 brands including former Oasis frontman Liam Gallagher’s Pretty Green and 1980s brand Tessuti in a £47.5m cash deal with JD Sports. JD, which owns Size?, Finish Line in the US and Spain’s Sprinter as well as its main retail chain, said the sale of the “non-core” brands would allow it to focus on other priorities, particularly the “international and digital expansion of the group’s core premium sports fashion” retail brands. Ashley’s retail empire has a long history of buying up fashion brands to help bolster profits in its retail empire. Frasers already owns dozens of brands including Everlast, Lonsdale, Karrimor, Agent Provocateur and Firetrap and recently acquired tailoring brand Gieves & Hawkes and online fast fashion specialists Missguided and I Saw it First. It also has large stakes in listed luxury brands Hugo Boss and Mulberry.

JD Sells Brands

Musk No Longer World's Richest

Elon Musk is no longer the world's richest man after a sharp drop in the value of his shares in electric car company Tesla this year. According to both Forbes and Bloomberg, Mr Musk has been overtaken at the top spot by Bernard Arnault, the chief executive of luxury goods group LVMH. Mr Musk is chief executive and the largest shareholder in Tesla, with a reported stake of about 14%. He completed a $44bn takeover of social network Twitter in October. According to Forbes, Mr Musk is now worth about $178bn (£152bn). Meanwhile, Bernard Arnault has a value of $188bn. Mr Musk sold billions of dollars worth of Tesla shares to help fund his purchase, which helped to push the shares down. Investors have also been concerned that demand for the company's electric cars may slow, as the economy weakens, higher borrowing costs discourage buyers and other companies boost their electric vehicle offerings.

Worlds Richest

Twitter Hotel

The BBC has been given photos of Twitter office space that has been converted into bedrooms, which San Francisco authorities are probing as a possible building code violation. One image shows a room with a double bed, including a wardrobe and slippers. An ex-worker said new Twitter boss Elon Musk has been staying at the headquarters since he bought the firm. He last month emailed all Twitter staff saying they "will need to be extremely hardcore" to succeed. San Francisco's Department of Building Inspection has confirmed it is investigating potential violations following a complaint. Mr Musk said the city was attacking companies for providing beds to "tired employees". In a now-deleted tweet, Mr Musk posted that he would work and sleep in the office "until the org is fixed".

Twitter Hotel

The Changing High Street

The full extent of changes to Britain's High Streets after two years of Covid lockdowns and trading restrictions is revealed in data from Ordnance Survey. Overall, there were 9,300 fewer retail outlets in March 2022 than March 2020, as shoppers switched to online stores. The findings illustrate the changing face of the British High Street from a place to buy things to a place to do stuff - like get your nails done and meet friends for a coffee or a cocktail.Beauty salons and tattoo parlours have prospered on High Streets while the number of banks and department stores has fallen. Places to eat and drink have also increased - despite social distancing. Debenhams and Beales were among the landmark High Street retailers to close their doors during the pandemic, contributing to a 13.4% drop in department stores across Great Britain. Two years on from the first lockdown in 2020, there were 328 fewer such stores. Check out the details below:

High Street

Mac n Cheese Sued

 

A Florida woman has sued the makers of Velveeta Shells and Cheese, claiming the dish takes too long to make. The Kraft Company markets its microwaveable cups as "ready in 3.5 minutes" but Amanda Ramirez says it takes longer. The $5m (£4.2m) lawsuit claims the time advertised does not include preparation time - opening the lid and sauce pouch, before adding water and stirring. Kraft Heinz Foods Company described the lawsuit as "frivolous". In the lawsuit, which was filed in a Florida court last month, Ms Ramirez's lawyers claim she paid more than she would have had she known the truth. The lawsuit also asks the company to "cease its deceptive advertising" and "be made to engage in a corrective advertising campaign". It is not the first time a US customer has sued a company over false advertising. Earlier this year, a New York man filed a lawsuit against McDonald's alleging their adverts made their burgers look much bigger than they actually were. The lawsuit said the burgers in the marketing were at least 15% larger than they were in real life.

Mac n Cheese

Next Rescues Joules

Clothing chain Joules has been rescued from administration by retail giant Next and founder Tom Joule. Under the £34m deal, Next says it intends to keep about 100 Joules stores open and save 1,450 jobs. However, 19 stores will be closed with immediate effect with the loss of 133 posts. Joules, known for its premium, brightly-coloured clothes, collapsed into administration last month after failing to secure emergency investment. Like other retailers, the Leicestershire-based firm has struggled against a backdrop of the coronavirus pandemic and cost-of-living pressures. Under the terms of the deal, Next will take a 74% stake in the business, with Tom Joule owning the rest. Next has also paid £7m to buy the current Joules head office. Next will continue to operate Joules' website but will also sell Joules-branded clothing through its own e-commerce platform from 2024. Tom Joule, who founded Joules in 1989, said the deal would protect the future of the company for its "loyal customers, its employees and also for the town of Market Harborough, which have been so central to Joules' success".

Joules

Bean Pizza

A pizza covered in Heinz baked beans is now available to buy in supermarkets. These pizzas can be purchased for £3 from Iceland and feature a crispy base topped with tomato sauce, mozzarella, cheddar cheese and, of course, the brand’s famous baked beans. But this isn’t the first time the unusual pizza has hit supermarket shelves. In fact, it seems Heinz has resurrected the pizza after a 19-year hiatus – as it was previously sold in the 90s and disappeared from stores in 2003. The baked bean pizza is one of many items the brand is pushing this year, including Heinz Beanz Burgerz, Heinz Beanz Bowls and, of course, Heinz Beanz Filled Hash Browns. And it seems baked bean lovers should expect more to come. Sophie Higgins, the head of growth platform, New Ventures at Heinz, says: ‘This is our fourth foray into the freezer aisles for Heinz Beanz over the past year, following the launch of our first frozen ready meals range – Beanz Burgerz, Beanz Bowlz, and Beanz Hash Browns.  ‘But we don’t plan on stopping there. Make sure to watch this space for even more exciting Beanzy news.’

Heinz

Earthshot Prize Winner

A UK firm that makes packaging from seaweed has been named as one of the £1m winners of Prince William's Earthshot climate prize. The alternative to plastic was developed by London startup Notpla. The firm was founded by Rodrigo Garcia Gonzalez and Pierre Paslier while they were students at Imperial College London and the Royal College of Art. The Earthshot Prize gives grants to firms that innovative ideas for the environment that can be scaled-up. Manufacturing plastic adds to greenhouse gases, and plastic pollution can harm animals and the environment. Hackney-based Notpla first developed an edible "bubble" called an "Ooho" that could hold water, and then a plastic alternative called "Notpla" made from seaweed. Its products include a coating for takeaway boxes, film, paper made from seaweed pulp, and a rigid plastic alternative, also made from seaweed. This year the firm has made more than a million takeaway food boxes for takeaway delivery platform JustEat.

Notpla

Black Friday Rebound

Black Friday sales bounced back this year as shoppers looked out for good deals, despite predictions the higher cost of living would dampen the event. Barclaycard Payments, which processes £1 in every £3 spent on UK cards, said transactions rose 3.2% on last year. An all-time Black Friday record was made for the number of transactions per second between midday and 1pm. Currys said energy-efficient products led its sales as customers looked to save money on energy bills. Footfall in shops was up on 2021 with no Covid rules this year, but was down compared to before the pandemic. Experts had predicted overall sales and profits would be lower than last year, due to customers tightening their purse strings as prices rise at the fastest rate for 41 years.

Black Friday

Dr Martens Boots Up Prices

Dr Martens is to step up the price of its boots by 6%, as it says the cost of labour, energy and supplies, including the bouncy soles and leather, has risen. The Northamptonshire-based footwear group will increase prices for the second year in a row on the classic boot, which currently costs about £159, adding £10 to the price. The rise will come next autumn to reflect higher production costs that the company has now locked in over the course of next year. Staff costs are rising, and Dr Martens is offering a £500 cost of living bonus – paid out over October and November – to about 2,000 of its 3,500 workers around the world. Wilson said the company was making the payment as its workers were facing “very tough levels of inflation” around the world: “At the end of the day, people are the differentiator. We have a highly engaged workforce and wanted to show we cared for people who work for Dr Martens, and actions speak louder than words.” Shares dived almost 24% as the company warned of “variable trading” in recent weeks, partly because of mild autumn weather in the UK and Europe, and said that profit margins would take a hit.

Dr Martens

Apple Workers Protest in China

Protests have erupted at the world's biggest iPhone factory in the Chinese city of Zhengzhou, according to footage circulated widely online. Videos show hundreds of workers marching, with some confronted by people in hazmat suits and riot police. Those livestreaming the protests said workers were beaten by police. Videos also showed clashes. Manufacturer Foxconn said it would work with staff and local government to prevent further violence. In its statement, the firm said some workers had doubts about pay but that the firm would fulfil pay based on contracts. Last month, rising Covid cases saw the factory locked down, prompting some workers to break out and go home. The company then recruited new workers with the promise of generous bonuses. But one worker said these contracts were changed so they "could not get the subsidy promised", adding that they were quarantined without food. The Zhengzhou plant employs more than 200,000 people, making Apple devices including the iPhone 14 Pro and Pro Max.

Apple China Protests

Lucozade Pulls Out of World Cup

England sponsor Lucozade will avoid having a brand presence at the FIFA World Cup in Qatar. Lucozade is a partner of England, rather than FIFA or the tournament itself, and has chosen to remove its branding at “press conferences, training sessions, and pitches”. It is understood that it is a matter for England partners how they activate their sponsorship of the England team in Qatar. A statement from the drinks company to The Athletic read: “Lucozade Sport is a proud long-term sponsor of the England team, but we are not an official FIFA World Cup partner. We continue to support all England teams, who celebrate diversity, equity and inclusion. “While the England team have access to our drinks for hydration purposes we will not have a brand presence at press conferences, training sessions or on pitches.” Other brands have also attempted to minimise their presence at the tournament. For example, Hummel, Denmark’s kit manufacturer, “toned down” its logo and design on the team’s World Cup kits because it does not want to endorse Qatar, the host nation.

Lucozade World Cup

Bezos to Give Away Fortune

Amazon founder Jeff Bezos has said he plans to give away most of his $124bn (£107bn) fortune during his lifetime. The businessman told news network CNN he would donate his wealth to fighting climate change and reducing inequality. He has previously been criticised for not promising to dedicate his fortune to charity. Investor Warren Buffett, Microsoft founder Bill Gates and Mr Bezos's ex-wife MacKenzie Scott have all promised to give their money away.  Mr Bezos revealed his plans after donating $100m to the country music star and philanthropist Dolly Parton to use for charitable causes. The multi-billionaire previously pledged $10bn to the Bezos Earth Fund, which he launched in 2020 to help fight climate change. The move came after Mr Bezos and other entrepreneurs were criticised for spending vast amounts of money on trips into space instead of solving problems on Earth. Amazon had also been criticised in the past by its workers over its record on climate change. Mr Bezos became one of the richest people on the planet after Amazon, the internet retailer he founded in 1994, became a global phenomenon.

Bezos Fortune

Primark Trials Click + Collect

Primark's website crashed on Monday, shortly after the retailer finally launched its click-and-collect service. It is starting a trial in 25 stores in north-west England, Yorkshire and north Wales for children's products only. The budget chain, which lost more than £1bn in sales during the pandemic when its stores had to close, has succumbed to the online shopping revolution but it is not planning deliveries. Primark said it was aware some people had issues accessing its site. "We're working hard to address this to ensure that everyone can access and browse the site easily," the company said in a statement. By mid-afternoon the website appeared to be back up and running for some customers. During the pandemic lockdowns Primark's 190 UK stores were forced to close its doors, and it had no online operation to fall back on. Given the costs of fulfilling and delivering online orders, and dealing with high levels of returns, it can be hard for retailers to make the economics of e-commerce stack up. Primark has also been upping its game at its biggest "destination" stores, like its vast Manchester city centre one, with cafes, a barber shop, a vintage concession store and pop-up space to personalise Primark products.

Click + Collect

KFC Promotion Mistake

KFC has apologised after sending a promotional message to customers in Germany, urging them to commemorate Kristallnacht with cheesy chicken. The Nazi-led series of attacks in the country in 1938 left more than 90 people dead, and destroyed Jewish-owned businesses and places of worship. It is widely seen as the beginning of the Holocaust. The message, heavily criticised for its insensitivity, was later blamed on "an error in our system". The fast-food chain sent an app alert on Wednesday, saying: "It's memorial day for Kristallnacht! Treat yourself with more tender cheese on your crispy chicken. Now at KFCheese!" Around an hour later another message was sent with an apology, according to the Bild newspaper. "We are very sorry, we will check our internal processes immediately so that this does not happen again. Please excuse this error," the message is reported to have said.

KFC Apologise

Meta Cut Staff

Meta, which owns Facebook, Instagram and WhatsApp, has announced that it will cut 13% of its workforce. The first mass lay-offs in the firm's history will result in 11,000 employees, from a worldwide headcount of 87,000, losing their jobs. Meta chief executive Mark Zuckerberg said the cuts were "the most difficult changes we've made in Meta's history". "I know this is tough for everyone, and I'm especially sorry to those impacted," he wrote in a statement. Mr Zuckerberg blamed massive long-term expectations for growth based on the firm's rise in revenue during the pandemic. "Many people predicted this would be a permanent acceleration," he wrote, "I did too, so I made the decision to significantly increase our investments." Instead he said "macroeconomic downturn" and "increased competition" caused revenue to be much lower than expected "I got this wrong, and I take responsibility for that," he said. The announcement of job cuts was widely expected. Mr Zuckerberg told hundreds of Meta executives of the plans on Tuesday, the Wall Street Journal reported.

Meta Job Cut

Christmas Advert Season

 

Christmas adverts have started on TV - and as ever, many conjure up sentimentality, nostalgia and joy. But as the cost-of-living soars, some retailers have opted for a more muted approach to their campaigns this year. John Lewis said its advert, featuring a foster family, was less about buying things and more about kindness. But some retail experts warned scenes of bountiful buffets in other ads were still out of touch as families struggle with rising prices. John Lewis is the latest big-name brand to beam its festive message into homes around the UK. It told the BBC the cost-of-living crisis was "front of mind" when deciding what tone the advert should take. Market research experts say brands were being careful not to look out of touch with their customers. John Lewis would not comment on how much it cost to make the advert, which is 90 seconds long and set to a cover of Blink 182's All The Small Things by the artist Mike Geier. Retail and marketing experts agree that brands will have had to work hard to get the tone right this year, at a time when many people are cutting back.

The John Lewis & Partners Christmas Advert

Twitter Takeover

 

Twitter's new owner Elon Musk says he had "no choice" but to slash the company's workforce as the firm is losing more than $4m (£3.5m) a day. Half of the company's staff are being let go, a week after Mr Musk bought Twitter in a $44bn (£38.7bn) deal. Twitter staff have been using the platform to talk about their dismissal. There are concerns Twitter could water down content moderation but Mr Musk said the firm's policies remain "absolutely unchanged". An internal email sent to staff earlier on Friday said the mass job cuts were "unfortunately necessary to ensure the company's success moving forward". Staff confirmed on Twitter they had been logged out of work laptops and Slack, a messaging system. A host of major brands have halted advertising spending with Twitter, including Volkswagen, General Motors and Pfizer. Almost all of Twitter's revenue currently comes from advertising, and Mr Musk has been looking for ways to cut costs and make money in different ways from the platform, including plans to charge a monthly subscription fee for users to be verified on the platform.

Twitter

Fiesta Finished

The popular Ford Fiesta is set to be discontinued as early as next year as costs of parts rise and drivers opt for SUVs. Ford bosses are expected to announce in the next few days that the production of the Fiesta will end by mid-2023. Executives are believed to be holding talks with dealers, suppliers and staff ahead of the announcement. Ford apparently has no plans for an electric version of the car despite its popularity. A spokesman for Ford said that it was "accelerating our efforts to go all in on electrification", and so the company is reviewing the portfolio of cars it has on offer. He added that the carmaker does not comment on speculation and that more information would be made available soon. The Fiesta is currently produced in Germany, although the first model rolled off the production line in Dagenham, Essex, in 1977. The car was at the forefront of the US carmaker's efforts to corner the British car market because of its more affordable price point. Although last month, the Fiesta was still the sixth best-selling new car in the UK with 4,570 registrations. Ford is thought to be using electrification as an opportunity to reinvent the brand for eco-conscious consumers.

Ford Fiesta

Bounty Bars Removed from Celebrations

 

The maker of Celebrations chocolates is to remove Bounty bars from some tubs next month after finding 40% of people hate the coconut-flavoured treat. Mars Wrigley said a limited run of "No Bounty" tubs would be available at 40 Tesco stores in the run-up to Christmas. It comes after the brand let shoppers return unwanted Bounties last year. However, the food maker said it was yet to decide whether the divisive treats would be banished for good. Mars Wrigley said its own research of 2,000 people aged between 18 and 65 suggested that 18% would feel irritated to find only Bounty bars were left in a tub, while 58% believed it would lead to a family argument. Some 22% said they liked Bounty the least of all the options in tubs of Celebrations, while 39% wanted the bars gone for good, However, Mars Wrigley said it was not prepared to make a final decision yet after 18% of people named the Bounty as their favourite. Its polling also suggests the sweet is popular with older consumers, with 38% of over-55s choosing it as their preferred bar. Mars Wrigley said the limited edition tubs would include additional Mars, Snickers, Milky Way, Galaxy and Maltesers sweets.

Bounty Removed

Tesco Meal Deal Price Rise

 

Tesco has raised the price of its meal deal as food costs soar. The sandwich, snack and drink deal will increase to £3.40 for Tesco Clubcard members after more than 10 years being priced at £3. It will go from £3.50 to £3.90 for those without a loyalty card. Food prices are rising at their fastest rate in 42 years, squeezing household budgets and driving grocery inflation to 14.6% in the 12 months to September. Tesco said its meal deal still represented "great value". The supermarket said more than 70% of its customers currently use a Clubcard, which is a free card that gives customers discounts. Companies are facing increased costs for things like fuel, wages and ingredients, and many firms are now passing those on to customers by raising prices. A BBC survey has uncovered growing concern about the squeeze on finances. Some 85% of those asked are now worried about the rising cost of living, up from 69% in a similar poll in January. As a result, nine in 10 people are trying to save money by delaying putting the heating on and three in five people in the UK will cut back this Christmas.

Meal Deal

Coco Chocolatier Takes On Tony

Premium chocolate maker Coco Chocolatier is hoping to challenge Tony’s Chocolonely with two new retail brands. The supplier has debuted Up Up, a “slave-free” tablet brand that uses single-estate cocoa from a plantation in north Colombia, which is then turned into chocolate in Bogotá. The business teamed up with Swiss NGO Slavefreetrade to ensure every step of its production is traceable. It also hoping to challenge free-from chocolate brands such as Hip with Otherly, a new vegan chocolate brand made using oat milk. Both brands have debuted with a quartet of 130g bars. Up Up has rolled out Milk Chocolate, Dark Chocolate, Sea Salt & Lime, and Salted Caramel flavours (rsp: £3.50/130g).

Up Up Chocolate

ASOS Shoppers Cut Back

Online fashion retailer Asos has reported a big loss as its customers spend less on fashion due to the rising cost of living. The firm saw a loss of nearly £32m in the 12 months to August, compared with a profit of £177m last year. The firm expects shoppers to cut back further this year as living costs soar. Inflation returned to a 40-year high in September as BBC research showed people are feeling increasingly anxious about their finances. Asos, which owns Topshop and Topman, said it was facing "an incredibly challenging economic environment" at the moment. Asos and its rival Boohoo, which were seen as a poster children for the shift to online shopping, benefited during the pandemic as locked-down shoppers splashed out online. But they have struggled as people have returned to stores. Asos said in June that cash-strapped consumers were also returning more items bought online, hitting its profits. The fashion retailer said it now planned to rebuild its once-successful business model, sorting out problems with its supply chain and refreshing its fashion ranges.

ASOS

Heinz Apology

Heinz, the UK’s favourite baked beans brand, has taken out a page of The Guardian to issue an apology for taking 150 years to launch a new range of pasta sauces. The apology to the British public and Heinz’ founder Henry Heinz for not creating the pasta sauce despite its focus on tomato products. However, the brand explained it would probably be “the best pasta sauce you’ve ever tasted”, assuring it was worth the wait “because nothing so ridiculously good, has come so ridiculously late”.The move to a pasta sauce range has been deemed an important step in strategy to expand into new categories. “Despite our extensive agriculture heritage and tomato expertise, this is the first Heinz pasta sauce launched in the UK —a market where Heinz is annually ranked amongst the most loved food brands,” Kraft-Heinz new ventures director Caio Fontenele said. “We thought it was the right time to launch Heinz Pasta Sauces, with cooking and pasta sauces receiving a boost in sales in 2020 thanks to consumers experimenting more with meals at home. The category is estimated to see 19.2% rise in value sales growing to £962 million.”

Heinz Pasta Sauce

Nike Forward

For 50 years, Nike has created shoes and fitness apparel that make you feel better: fitter, faster, stronger. With their latest innovation, the company hopes to better the world. Today, you can buy the first pieces made from the brand’s new material called Forward. Unlike traditional fabrics—which come to life via a multistage process that involves spinning yarn, knitting, cutting, sewing, and more—Forward is made using needle-punch machines. Nike adapted this tech from the automotive and medical industries over five years, using it to turn multiple thin layers of fiber into textile. Reducing the manufacturing steps cuts down on energy usage, resulting in a carbon footprint that’s 75 percent smaller than that of a traditional Nike knit fleece. The first Nike Forward silhouettes are a classic grey hoodie and crew neck. Both highlight Nike’s commitment to sustainability: They’re made without dyes, which generates zero water waste; free of embellishments like zippers, aglets (those metal and plastic tubes on the end of shoelaces), or extra trims that make apparel harder to recycle. 

Nike Forward

Netflix Ad-Supported Version

Netflix is launching a new streaming option with adverts in November, introducing a less expensive offering as it fights to keep viewers. The plan will be available in 12 countries including the UK, US, Canada, Mexico and Australia. The firm said it would charge £4.99 a month for the service in the UK, while it will cost $6.99 in the US. Netflix has been losing customers as competition and cost of living pressures mount. The company lost more than 1 million subscribers in the first half of this year. It is due to provide an update of that figure to investors next week. Netflix's move into advertising is a big change for the company, which pioneered the idea of subscription-based streaming. Subscribers to the new offering should expect to see an average of four to five minutes of adverts per hour, the company said. Disney, for example, is due to roll out an advert supported service in December in the US. That plan will start at $7.99 a month. Netflix is asking people who sign up for the ad service for gender and birth date information as part of efforts to target ads.

Netflix Advert

Sausage Roll Price Hike

 

British baker and fast-food chain Greggs this week introduced a further round of price rises, including for the sausage rolls it is famous for, as it battles rising costs, its boss said on Tuesday. "We have put a small number of rises across products as of yesterday, we've worked hard to mitigate that," Chief Executive Roisin Currie told Reuters. She said a Greggs sausage roll was 1.05 pound ($1.20) at the start of the year, moved to 1.10 pound in May and is now 1.15 pound. The bakery chain wrote in a tweet: “Like many other retailers, we’re having to manage the pressure of rising prices across our supply chain. We’ve had to make some small price increases across our range.” Rising costs of raw materials, production, labour and energy have all impacted the chain, forcing it hike the prices of its food to absorb some of the costs. However, the chain said its low-cost meals were appealing to people who are struggling amid the current cost of living pressures.

Greggs Sausage Roll

Vodafone & Three Merger

Vodafone is in talks with Three about merging their UK businesses. It would mean the third and fourth largest mobile phone networks respectively combining to create a business with 27 million customers, larger than current leaders BT, EE and Virgin Media O2. The companies say it would accelerate the rollout of 5G and rural broadband. Any deal would be scrutinised by the Competition and Markets Authority (CMA). Reports suggest the two companies are hopeful of striking a deal by the end of the year. Regulators have previously opposed mergers that would reduce the number of networks in the UK. However, Vodafone has pointed to a recent report from communications regulator Ofcom which might suggest a new approach. It found that both Vodafone and Three had in recent years delivered returns on investments that were lower than the cost of the capital they used. Vodafone pairing with Three is just one potential tie-up in the UK. Other deals involving Virgin Media O2, TalkTalk and Sky have been speculated in recent months.

Phone Merger