U.K. operators Vodafone and Three could potentially reduce investments in the 5G field if local regulators block the proposed merger between the two telcos, local newspaper The Times reported Vodafone CEO Ahmed Essam as saying.

Essam indirectly warned regulators that a decision to block the attempted merger of Vodafone and Three UK would result in them cutting their investment in digital infrastructure and being unable to deliver on the U.K. Government’s goals in the 5G field.

Essam said that, without the merger, “we won’t be able to invest as much, and we won’t be able to deliver the 5G ambition that’s coming in the wireless infrastructure strategy from the government. It will just slow us down.” The U.K. Government’s new Wireless Infrastructure Strategy has laid out a goal for all populated areas in the U.K. to be covered by 5G Standalone networks by 2030.

The merger is subject to approval from the Competition and Markets Authority, which is currently looking deeperthe proposed transaction.

Vodafone Group and CK Hutchison Group Telecom Holdings recently entered into binding agreements in relation to a combination of their telecommunication businesses in the U.K. Under the terms of the deal, Vodafone will own 51% of the new entity while Hutchison Group will own 49%.

If the transaction is approved, the new entity will reach 99% of the U.K. population with 5G Standalone (SA) networks. Also, the combined business will invest £11 billion ($13.95 billion) in the U.K.

The transaction is expected to result in substantial efficiencies, including more than £700 million of annual cost and capex synergies by the fifth full year after the completion of the merger, Vodafone and Hutchison said.

The companies said that no cash will be paid upon completion of the merger and the businesses will contribute different debt amounts to achieve the ownership split. According to the terms of the deal, Vodafone will have the option to acquire CK Hutchison’s 49% stake in the future.

The transaction is expected to close before the end of 2024.

The announcement has been awaited for some time. In October last year, Vodafone Group confirmed that it was in discussions with CK Hutchison Holdings in relation to a possible combination of Vodafone UK and Three. Previous reports noted that the transaction would be subject to an in-depth investigation by the Competition and Markets Authority.