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Benzinga
Benzinga
Technology
Anusuya Lahiri

Vodafone Mulls Merging UK Unit With CK Hutchison's Three

  • Telecoms group Vodafone Group Plc (NASDAQ:VOD) is in talks to combine its U.K. operations with Three UK, the mobile operator owned by Hong Kong infrastructure conglomerate CK Hutchison Holdings LTD (OTC:CKHUY), the Financial Times reports
  • The deal could help consolidate the British mobile market as Vodafone faces pressure from Europe’s most prominent activist investor, Cevian Capital, to simplify its business and improve returns. 
  •  Although Vodafone’s share price has gained by 3% since 2022, it has lost 44% of its value over the past five years. 
  • The bringing together of the third and fourth-largest mobile network operators in Britain could invite regulatory scrutiny.
  • Meanwhile, Three reported flat quarter-on-quarter revenues of £582 million despite increasing net new customers since mid-2020.
  • Analysts had previously speculated that Vodafone could seek to buy Three, but it would need to meet CK Hutchison’s hefty price expectations. 
  • Price Action: VOD shares traded higher by 1.24% at $14.75 in the premarket on the last check Thursday.
  • Photo via wikimedia Commons
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