Vodafone and Three announce merger to create biggest network in UK
Mobile operators Vodafone and Three have revealed plans to join forces
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, more than operators O2 or EE.
Vodafone has an HQ on a campus near Newbury while Three are based in Reading.
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.”
The group will invest 11-billion-pounds in Britain's 5G network over 10 years as it looks to get the deal past regulators.
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