Vodafone has agreed to acquire full control of the UK's largest mobile operator, VodafoneThree, in a £4.3bn deal with Hong Kong conglomerate CK Hutchison. The transaction involves Vodafone buying CK Hutchison's 49% stake in the joint venture, which serves over 27 million subscribers, for cash and cancelling the shares.
The deal is part of CK Hutchison's broader strategy to reshape its global portfolio, including the potential sale of most of its ports and a possible stock market listing of its retail arm. CK Hutchison previously held a controlling stake in Three UK before merging it with Vodafone's British network in 2023, creating a market leader ahead of BT/EE and Virgin Media O2.
Susannah Streeter, chief investment strategist at Wealth Club, said the buyout would allow Vodafone to streamline decision-making and accelerate its 5G rollout. “Given that joint ventures can slow decision-making, this should enable Vodafone to up the pace of its 5G infrastructure rollout, improve network quality so it can compete on performance and reliability,” she noted.
Canning Fok, deputy chair of CK Hutchison, highlighted the group's pioneering role in 3G mobile telecommunications and said the sale allows them to “realise the value of our investment” in VodafoneThree. The deal is subject to regulatory approval under the UK National Security and Investment Act and is expected to complete in the second half of 2025.
CK Hutchison's share price rose 2.6% in Hong Kong following the announcement, while Vodafone's shares slipped 0.4%.
