Vodafone and Three to merge their UK networks and create a ‘5G Giant’

Vodafone and Three owner CK Hutchison Group have announced an agreement to merge their UK networks.

The deal will create a European 5G giant.

Combined, the networks will reportedly be worth a reported £15 billion.

The merged firm will be majority owned by FTSE 100 listed Vodafone, with 51% of the combined business and CK Hutchison owning the remaining 49%.

Margherita Della Valle, chief executive of Vodafone, called the deal a ‘gamechanger’.

She said: ‘The merger is great for customers, great for the country and great for competition.

‘It’s transformative as it will create a best-in-class – indeed best-in-Europe – 5G network, offering customers a superior experience.

‘As a country, the UK will benefit from the creation of a sustainable, strongly competitive third scaled operator – with a clear £11 billion network investment plan – driving growth, employment and innovation.

‘For Vodafone, this transaction is a gamechanger in our home market. This is a vote of confidence in the UK and its ambitions to be a centre for future technology.’

The groups are expected to have a combined 27 million customers if the deal gets the go ahead.

But already, the plan has garnered backlash.

Gail Cartmail, executive head of operations for the union Unite said: ‘This deal will give a company with deep ties to the Chinese state an even more prominent place at the heart of the UK’s telecommunications infrastructure. On top of that, it will hike people’s bills and mean job losses for Vodafone and Three workers.

‘The government must step in and stop this reckless merger and Unite is building a cross-party coalition to demand they do so.’

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