Vodafone Group and owner of Three UK, CH Hutchison Group Telecom Holdings (CKHGT), announced the agreement last week. According to a statement, Vodafone will own 51 per cent of the combined business, with CKHGT owning 49 per cent. The deal is expected to close before the end of next year, subject to “regulatory and shareholder approvals.”
Current Vodafone UK CEO Ahmed Essam will become MergeCo CEO, with current Three UK CFO Darren Purkis fulfilling the role of MergeCo CFO.
Discussing the merger, a spokesperson said: “From day one, millions of customers of Vodafone UK and Three UK will enjoy a better network experience with greater coverage and reliability at no extra cost.
“MergeCo will reach more than 99 per cent of the UK population with our 5G standalone network, delivering to customers up to a six-fold increase in average data speeds by 2034.”
The spokesperson continued: “The merger will create a third operator with scale, levelling the competitive playing field [and] increasing competition to the UK’s two leading converged operators. It will also provide more choice in wholesale partners for the UK’s already competitive mobile virtual network operators [MVNOs].”
Margherita Della Valle, Vodafone Group chief executive, said: “The merger is great for customers, great for the country and great for competition. It’s transformative as it will create a best-in-class – indeed best in Europe – 5G network, offering customers a superior experience.
“As a country, the UK will benefit from the creation of a sustainable, strongly competitive third scaled operator – with a clear £11bn network investment plan – driving growth, employment and innovation.”
“For Vodafone, this transaction is a game changer in our home market. This is a vote of confidence in the UK and its ambitions to be a centre for future technology.”
CEO of Three UK, Robert Finnegan, said: “Today’s news marks a significant step in our efforts to create a business that will build the biggest and fastest 5G mobile network in the country.
“The combination of Three UK and Vodafone UK will bring the advantages of 5G to every business and household in the UK, enabling the UK to deliver its ambitions for digital and economic growth and fully supporting the UK government’s objectives for a world-leading digital economy.”
