Three becomes one as Vodafone buys out merger partner
Article excerpt
NETWORKS £4.3B deal gives telco full control of Britain's largest mobile operator Vodafone has paid £4.3 billion ($5.78 billion) for the remaining 49 percent of VodafoneThree, taking full ownership of the UK's largest mobile operator. The telecoms giant announced that it planned to buy the stake held by Three's former parent, CK Hutchison Group Telecom Holdings, in May. The acquisition comes just over a year after Vodafone UK and Three UK completed their merger following conditional approval from the Competition and Markets Authority (CMA). The merger reduced the UK market to three mobile network operators: VodafoneThree, BT/EE, and Virgin Media O2 (VMO2). Vodafone claims full ownership will help it move faster and capture the "significant benefits" of an £11 billion ($14.7 billion) network investment plan and its "targeted synergies." These include £700 million ($942 million) in annual cost and capital expenditure savings expected by the 2030 financial year. The £11 billion investment plan was a condition of the CMA's approval. The watchdog had expressed doubts that the companies would honor their pledges without binding commitments. Vodafone Group chief Margherita Della Valle said: "With full ownership and control, we'll have the ability to move faster in the next phase of building one of Europe's leading networks. This best-in-class infrastructure will deliver better...
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Elsewhere, Della Valle reportedly told the company's annual general meeting this week that Vodafone intends to begin UK beta testing of its direct-to-device satellite service in early 2027.
