Vodafone and Three merger completed in UK

Author: Joe Peck

Vodafone, a leading global telecommunications company, and CK Hutchison Group Telecom Holdings (CKHGT), a wholly owned subsidiary of CK Hutchison, have today announced that the merger of Vodafone UK and Three UK successfully completed on 31 May 2025.

The combined business, named VodafoneThree, is 51% owned by Vodafone and 49% by CKHGT. Vodafone will fully consolidate VodafoneThree in its financial results and the Chief Executive Officer is Max Taylor, who currently leads Vodafone UK. Three UK’s Darren Purkis is appointed Chief Financial Officer.

VodafoneThree intends to invest £11 billion over the next 10 years.

In its first year, VodafoneThree plans to invest £1.3 billion in capex. This should enable the company to accelerate its network deployment, and the combined business is expected to deliver cost and capex synergies of £700 million per annum by the fifth year after completion. The transaction is expected to be accretive to Vodafone’s Adjusted free cash flow from FY29 onwards. Full alignment to Vodafone’s accounting policies is ongoing and the company states that pro forma financials will be provided in due course.

High quality network connectivity is critical to many elements of daily life. It is also central to the UK’s economic growth prospects, important for the UK’s science and technology sectors, as well as for improving public services. This investment in a 5G standalone network is being made with the stated aim to propel the UK’s mobile infrastructure to the forefront of European connectivity.

Margherita Della Valle, Vodafone Group Chief Executive, says, “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, comments, “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 £1.3 billion in net cash to the Group.”

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