Vodafone has finalised its £15 billion merger with Three UK, creating what it calls a “new force in UK mobile”.
The merger of the UK network businesses, officially completed on May 31, comes nearly two years after it was initially announced.
VodafoneThree, now the UK’s largest mobile phone network with approximately 27 million customers, has committed to investing £11 billion over the next decade to enhance its 5G capabilities. Following the merger, £1.3 billion will be invested this financial year.
Margherita Della Valle, Vodafone group chief executive, 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.
“The transaction completes the reshaping of Vodafone in Europe, and following this period of transition we are now well positioned for growth ahead.”
The companies first announced the landmark deal in June 2023 – in a major shake up of Britain’s mobile phone sector.
It was scrutinised closely by the Competition and Markets Authority (CMA) amid concerns it could substantially reduce options for mobile customers and lead to higher bills.
But the CMA gave the green light to the deal in December last year, with conditions.
It said the landmark deal could go ahead if both companies agreed to invest billions of pounds to roll out a combined 5G network across the UK, while the firms were also told to offer shorter-term customer protections requiring the merged company to cap certain mobile tariffs for three years.
The firm’s initial payment will allow it to “accelerate its network deployment”.
The combined group are also aiming to deliver £700 million in savings annually within five years.
Canning Fok – deputy chairman of Three UK owner CK Hutchison, and executive chairman of CKHGT – said: “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.”
Vodafone owns 51% of the newly merged company and after three years will have the option to buy the rest of the merged firm.
VodafoneThree is headed by chief executive Max Taylor, who currently leads Vodafone UK, with Three UK’s Darren Purkisis appointed chief financial officer.
