2nd Jun 2025 09:53
(Alliance News) - Vodafone Group PLC on Monday reported the completion of the merger between Vodafone UK and Three UK.
The Newbury, England-based telecommunications company has combined its UK business with Three UK, a subsidiary of CK Hutchison Holdings Ltd, a Hong Kong-based, Cayman Islands-incorporated telecommunications firm.
The deal, closed on Saturday, has combined the businesses into VodafoneThree, which will provide 5G data network coverage in the UK.
Vodafone holds 51% of the combined business, with the remaining 49% owned by CK Hutchison Group Telecom Holdings Ltd. VodafoneThree will be fully consolidated in Vodafone's results, the firm said.
The merger follows a shaky year for Vodafone, which swung to a loss in financial 2025, despite a marginal improvement in revenue.
The company plans to invest GBP11 billion into VodafoneThree over the next decade, starting with capital expenditure of GBP1.3 billion in the business's first year. The combined business is expected to be cash accretive from financial 2029, targeting cost and capex synergies of GBP700 million annually by 2030.
Max Taylor, chief executive of Vodafone UK, is now CEO of VodafoneThree, while Three UK's Darren Purkis is its chief financial officer.
Vodafone Group CEO Margherita Della Valle commented: "The merger will create a new force in UK mobile, transform the country's digital infrastructure and propel the UK to the forefront of European connectivity.
"The transaction completes the reshaping of Vodafone in Europe, and following this period of transition we are now well-positioned for growth ahead."
VodafoneThree will publish pro forma financials "in due course".
Vodafone Group shares were down 0.8% at 76.28 pence each on Monday morning in London.
By Holly Munks, Alliance News reporter
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