Vodafone Group and CK Hutchison Group Telecom Holdings have completed the long-anticipated merger of their UK mobile operations, forming a new entity named VodafoneThree. Finalised on 31 May, the deal gives Vodafone a 51% stake in the business, with CK Hutchison retaining the remaining 49%. The merged company brings together Vodafone UK and Three UK […]
Vodafone Group and CK Hutchison Group Telecom Holdings have completed the long-anticipated merger of their UK mobile operations, forming a new entity named VodafoneThree.
Finalised on 31 May, the deal gives Vodafone a 51% stake in the business, with CK Hutchison retaining the remaining 49%.
The merged company brings together Vodafone UK and Three UK under the leadership of Max Taylor, formerly CEO of Vodafone UK. Darren Purkis, previously of Three UK, has been appointed chief financial officer.
VodafoneThree plans to invest £11 billion over the next decade to build one of Europe’s most advanced standalone 5G networks. Of this, £1.3 billion is allocated for capital expenditure in the first year, aimed at accelerating network deployment and improving nationwide coverage.
The company said the investment would enhance the UK’s mobile infrastructure, supporting the country’s science and technology ambitions, boosting public services, and helping to close the digital divide.
Margherita Della Valle, Vodafone Group chief executive, said: “The merger will create a new force in UK mobile, transform the country’s digital infrastructure and propel the UK to the forefront of European connectivity.
“We are now eager to kick off our network build and rapidly bring customers greater coverage and superior network quality.”
The combined business expects to achieve annual cost and capital expenditure synergies of £700 million by the fifth year after completion.
Canning Fok, deputy chairman of CK Hutchison, said: “As we have demonstrated in other European markets, scale enables the significant investment needed to deliver the world-beating mobile networks our customers expect, and the Vodafone and Three merger provides that scale.
“In addition, this transaction unlocks significant shareholder value, returning approximately £1.3 billion in net cash to the Group.”
Pro forma financials and full alignment with Vodafone’s accounting policies will be provided in due course.
