Vodafone has announced it will acquire full ownership of VodafoneThree, the UK's largest mobile network operator, by purchasing the 49% stake held by Hong Kong-based CK Hutchison for £4.3 billion.
Background of the merger
VodafoneThree was formed last year through the merger of Vodafone's UK business and rival Three UK. Initially, Vodafone held a 51% stake, while CK Hutchison, Three's owner, retained 49%. The joint venture quickly became the country's leading mobile operator and one of the fastest-growing broadband providers.
Deal valuation and synergies
The transaction values VodafoneThree at £13.85 billion, including debt. Company executives highlighted a "strong start to the integration" of the merged brands, projecting annual cost savings of approximately £700 million by 2030.
Margherita Della Valle, CEO of Vodafone Group, commented: "A year on from the merger, the team has made remarkable progress as we maximise the full potential of VodafoneThree and capture the significant synergies. I'm delighted that we will now have full ownership of VodafoneThree as we roll out one of Europe's most advanced 5G networks, provide the UK's best customer experience and drive long-term value for our shareholders."
Regulatory approval and leadership
The deal is subject to regulatory approval, including under the UK National Security and Investment Act, and is expected to conclude in the second half of the year. Max Taylor will continue as CEO of VodafoneThree, and the company confirmed there will be "no change" to its multi-brand strategy.
Frank Sixt and Dominic Lai, CK Hutchison Group co-managing directors, stated: "This transaction is a win-win for the group and for our partners. It generates substantial cash proceeds to the group and crystallises solid value for the group from our investment."
