Vodafone and Three complete £16.5bn UK mobile megadeal
Vodafone and Three have completed the £16.5billion tie-up of their British operations, creating the UK's biggest mobile phone network.
The enlarged business, named VodafoneThree, is 51 per cent owned by Vodafone, with the remaining 49 per cent held by CK Hutchison, the Hong Kong-based parent company of Three.
It intends to invest £11billion over the coming decade creating one of Europe's most advanced 5G mobile networks, including £1.3billion in the first year.
The combined group additionally hopes to deliver £700million of annual cost and capital expenditure synergies within five years.
Vodafone UK's current boss, Max Taylor, is the new company's chief executive, while Three UK's Darren Purkis is chief financial officer.
The mega-merger was initially agreed two years ago and given the green light by the Competition & Markets Authority last December.
However, competition regulators insisted that both firms invest billions in the UK's 5G network and cap prices on their lowest-cost mobile plans for three years.
For the same period, they also require Vodafone and Three to offer pre-set prices and contract terms for wholesale services to virtual network providers, including Giffgaff and Sky Mobile.
Critics of the transaction, which reduced the number of UK mobile phone operators to three, have expressed concern that it will lead to poorer service and higher prices for customers.
Margherita Della Valle, chief executive of Vodafone Group, 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.'
Under Della Valle, the Newbury-based firm has undergone a massive transformation, particularly in Europe, to help slash its debt pile and streamline operations.
It has offloaded its Spanish, Hungarian, and Italian divisions, as well as holdings in Indus Towers and Oak Holdings, the partnership that co-owns phone masts provider Vantage Towers.
In the company's latest annual results covering the 12 months ending March 2025, its net debt slumped by more than €10billion to €22.4billion even though it reported a £346million operating loss, compared to a £3.1billion profit the prior year.
Yet the FTSE 100 business said its net debts are set to rise by £1.7billion following the Three merger.
Vodafone Group shares were 0.4 per cent down at 76.6p on Monday morning but have still risen by around 11 per cent over the past year.
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