Vodafone Group PLC (LSE: VOD) has officially completed the merger of its UK operations with Three UK, forming a new entity named VodafoneThree. The newly combined business will be majority-owned by Vodafone with a 51% stake, while CK Hutchison, the parent company of Three UK, will hold the remaining 49%.
We are pleased to announce the successful completion of the merger of @VodafoneUK and @ThreeUK. #VodafoneThree will deliver a vastly superior mobile experience for millions of customers and businesses up and down the country.
— Vodafone Group (@VodafoneGroup) June 2, 2025
As part of its long-term strategy, Vodafone announced a £11 billion investment over the next 10 years to accelerate the roll-out of its 5G network across the UK. This includes £1.3 billion in capital expenditure during the first year alone.
The merger is expected to deliver annual synergies of £700 million by the fifth year, helping to improve operational efficiency and cost-effectiveness. Vodafone also anticipates a positive impact on its adjusted free cash flow starting from the 2029 financial year.
Vodafone Group CEO Margherita Della Valle commented, “This transaction marks the completion of Vodafone’s reshaping in Europe. As we move beyond this transition phase, we are now strongly positioned for future growth.”
Canning Fok, Deputy Chairman of CK Hutchison, added, “As seen in other European markets, scale is crucial to making the significant investments required to deliver top-tier mobile networks. The merger of Vodafone and Three gives us that scale.”
The newly formed VodafoneThree aims to become a powerful player in the UK telecom sector, leveraging combined resources to deliver next-generation mobile services and expanded 5G coverage.
