Virgin and O2 Clinch U.K. Approval for $44.4 Billion Deal (1)

Telefonica SA and Liberty Global Plc won approval to combine their U.K. operations O2 and Virgin Media, clearing the way for the creation of a 31.4 billion-pound ($44.4 billion) powerhouse that will reshape the nation’s phone markets.

The tie-up was scrutinized over concerns the combination could lead to higher prices and poorer wholesale services, the Competition and Markets Authority said Thursday. The CMA concluded, however, that was not likely.

“After looking closely at the deal, we are reassured that competition amongst mobile communications providers will remain strong and it is therefore unlikely that the merger would lead to higher prices ...