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Vodafone said the deal came at the “right time”, noting that the “significant progress” had already been made in integrating the two businesses
Vodafone has announced it will purchase CK Hutchison’s 49% stake in VodafoneThree for £4.3 billion, giving the UK-based mobile giant full control of the joint venture.
The deal, which values VodafoneThree at £13.85 billion including debt, will be facilitated by a cancellation of shares.
Max Taylor will remain a CEO of the company and Vodafone will retain the use of the Three brand.
CK Hutchison said the deal provided an “attractive” valuation, while Vodafone said deal will allow for continued simplification of operations, with the company aiming to achieve around £700 million in annual capex by the 2030 financial year.
VodafoneThree was formed by the merger of Vodafone UK and CK Hutchison’s Three UK in 2025, following around two years of regulatory scrutiny. The move immediately created the largest mobile operator in the UK, with around 27 million subscribers.
VodafoneThree has pledged to invest £11 billion in upgrading the company’s mobile network over the coming decade, ultimately aiming to reach 99.95% coverage with standalone 5G by 2034.
“A year on from the merger, the team has made remarkable progress, as we maximise the full potential of VodafoneThree and capture the significant synergies. I’m delighted that we will now have full ownership of VodafoneThree as we roll out one of Europe’s most advanced 5G networks, provide the UK’s best customer experience and drive long-term value for our shareholders,” said Margherita Della Valle, Chief Executive of Vodafone Group.
The move itself should not come as a surprise – the terms of the joint venture aways gave Vodafone the option of buying out CK Hutchison after three years, and analysts had regularly speculated that full ownership would be sought after the initial integration had proved successful. However, the speed at which the deal has materialised is notable.
“This deal was always on the cards but comes sooner than expected, with the joint venture still in its first year,” said CCS Insight analyst Kester Mann in a LinkedIn post.
“It also reinforces a wide-held industry view that the Vodafone brands will eventually prevail over the Three brands,” he added.
The deal is subject to regulatory approvals, including those in relation to the UK National Security and Investment Act.
It is expected to close in the second half of this year.
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