Vodafone and Three owner CK Hutchison have agreed to merge their UK operations in a deal that will create Britain’s biggest mobile phone player worth a reported £15 billion.
The merged firm will be majority owned by FTSE 100 listed Vodafone, with 51% of the combined business and CK Hutchison owning the remaining 49%.
The groups said the tie-up will help them compete with their rivals in the roll-out of 5G, with the new company set to reach more than 99% of the UK population with their 5G standalone network.
The groups are expected to have a combined 27 million customers if the deal gets the go ahead. Margherita Della Valle, chief executive of Vodafone, called the deal a “gamechanger”.
She said: “The merger is great for customers, great for the country and great for competition.
“It’s transformative as it will create a best-in-class – indeed best-in-Europe – 5G network, offering customers a superior experience.
“As a country, the UK will benefit from the creation of a sustainable, strongly competitive third scaled operator – with a clear £11 billion network investment plan – driving growth, employment and innovation.
“For Vodafone, this transaction is a gamechanger in our home market. This is a vote of confidence in the UK and its ambitions to be a centre for future technology.”
