UPDATE 1-UK's competition watchdog clears O2 and Virgin Media tie-up Reuters 2 hrs ago LONDON, April 14 (Reuters) - Britain's competition watchdog said on Wednesday it has provisionally cleared a merger between broadband company Virgin Media and Telefonica's UK mobile network O2 after an investigation into the $38 billion deal's potential impact. The Competition and Markets Authority said that its investigation had focused on whether the deal was likely to result in a substantial reduction of competition in the supply of wholesale mobile services and concluded this was unlikely. "A thorough analysis of the evidence gathered during our phase 2 investigation has shown that the deal is unlikely to lead to higher prices or a reduced quality of mobile services – meaning customers should continue to benefit from strong competition," said Martin Coleman, CMA Panel Inquiry Chair.