Vodafone is to take full ownership of its VodafoneThree business in the UK after striking a £4.3 billion deal to buy out partner CK Hutchison.
The VodafoneThree business was formed last year after the merger of mobile operators Vodafone and Three in the UK, with Vodafone taking a 51% stake in the joint venture and Hong Kong-based Three owner CK Hutchison taking a 49% stake.
VodafoneThree became the UK’s largest mobile operator following the deal and is one of the country’s fastest-growing broadband providers.
The companies said the new deal values VodafoneThree at £13.85 billion including debts.
Bosses said they had seen a “strong start to the integration” of the merged brands, putting them on track to secure around £700 million of annual cost efficiencies by 2030.
Margherita Della Valle, chief executive of Vodafone Group, said: “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.”
The deal is subject to regulatory approval, including under the UK National Security and Investment Act, and is expected to complete in the second half of this year.
Max Taylor will continue as chief executive of VodafoneThree, with the company stressing that there will be “no change” in its multi-brand strategy.
Frank Sixt and Dominic Lai, CK Hutchison Group co-managing directors, said: “This transaction is a win-win for the group and for our partners.
“It generates substantial cash proceeds to the group and crystallises solid value for the group from our investment.”
