Vodafone and CK Hutchison have officially completed the merger of Vodafone UK and Three UK, creating a new mobile powerhouse with 29 million customers.
The newly formed company, VodafoneThree, is 51% owned by Vodafone and 49% by CK Hutchison Group Telecom Holdings Limited. Vodafone will fully consolidate the entity into its financial results.
Max Taylor, former CEO of Vodafone UK, has been appointed CEO of VodafoneThree, while Darren Purkis of Three assumes the role of CFO.
Described as “one of the most important structural changes in the history of UK mobile” by CCS Insight analyst Kester Mann, the merger sets the stage for significant industry transformation. “This final step marks the end of a long journey and establishes a new market leader,” Mann said.
The company plans to invest £11 billion over the next decade to build one of Europe’s most advanced 5G networks, with £1.3 billion allocated in the first year alone to expand coverage and accelerate 5G Standalone deployment.
ALSO READ: GHANA, UAE PARTNER TO ESTABLISH INNOVATION AND TECHNOLOGY HUB
Vodafone Group CEO Margherita Della Valle hailed the move as transformational, saying it would “propel the UK to the forefront of European connectivity.” CK Hutchison deputy chairman Canning Fok emphasized the benefits of scale, noting the merger will return £1.3 billion in net cash to the Group.
The deal is projected to generate £700 million in annual cost and capital expenditure synergies within five years and contribute to Vodafone’s adjusted free cash flow by FY29.
Despite the positive outlook, analysts warn of challenges ahead. “The real work begins now,” Mann said, pointing to the complexity of integrating the two networks, brands, and operations.
TMT analyst Paolo Pescatore called the day “a big one for UK telco,” applauding the company’s multi-brand strategy and potential to disrupt the fixed-line market. However, he warned that network integration must be handled carefully to avoid customer disruption.
