Vodafone and Three complete merger in UK

Vodafone will hold a majority stake 51% stake in the business, with the other 49% going to by Three owner CK Hutchison Telecom Holdings. The completed firm will be fully consolidated in its financial results, with Vodafone chief executive Max Taylor assuming control of the business.  

Darren Purkis, meanwhile, will be the company’s chief financial officer – a position he currently holds at Three UK.  

The new business has it’ll invest £11bn over the next 10 years to boost, among other things, the UK’s 5G network – a condition set out by the Competitions and Market Authority as part of its authorisation of the merger – with VodafoneThree planning on investing £1.3bn in capex in its first year. 

Vodafone Group chief executive Margherita Della Valle said: “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.  

“We are now eager to kick-off our network build and rapidly bring customers greater coverage and superior network quality. The transaction completes the reshaping of Vodafone in Europe, and following this period of transition we are now well-positioned for growth ahead.” 

Canning Fok, deputy chairman of CK Hutchison and executive chairman of CKHGT, added: “As we have demonstrated in other European markets, scale enables the significant investment needed to deliver the world-beating mobile networks our customers expect, and the Vodafone and Three merger provides that scale.  

“In addition, this transaction unlocks significant shareholder value, returning approximately £1.3bn in net cash to the group.”