Vodafone Group has reached an agreement for the buyout of CK Hutchison Group Telecom Holding Limited (CKHGT) from the VodafoneThree joint venture for £4.3bn (€4.9bn) via a cancellation of shares. Following completion of thetransaction, Vodafone will become the sole owner of VodafoneThree, the UK’s largest mobile operator and one of thefastest growing broadband providers.
Since the merger of Vodafone UK and Three UK last year, significant progress has been made in integrating the two businesses. This has led to considerable improvements in network quality, which have been delivered ahead of schedule, as we look to build the UK’s best 5G network. Consumers and businesses up and down the country are already benefiting from greater coverage, speeds and reliability.
Alongside these network upgrades, we have also seen a significant improvement in overall customer experience and loyalty across all of our brands. Most notably, Three has seen a significant improvement in customer retention, and we are already successfully cross selling a broad range of products, including home broadband and Fixed Wireless Access, to the largest UK mobile base.
This strong start to the integration means we are now even more confident on delivering our plans to create one of Europe’s leading telecoms networks, which include expecting to realise £700mn annual cost and capital expenditure synergies by FY30. We believe now is the right time to take full ownership of VodafoneThree, enabling us to move at an even faster pace to transform the UK’s digital infrastructure and realise value for our shareholders.
Margherita Della Valle, Chief Executive of Vodafone Group, comments: “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.”
Max Taylor will continue in his role as Chief Executive Officer of VodafoneThree, supported by the existingVodafoneThree leadership team. There will be no change to VodafoneThree’s multi-brand strategy, ensuring continuityfor customers across all brands.
Completion is subject to the receipt of approvals under the UK National Security and Investment Act, associated with Vodafone moving to 100% ownership, and the Transaction is expected to complete in the second half of 2026.
