The UK now has a major new mobile company – VodafoneThree
Telecom giants Vodafone and Three have officially merged. The deal, which was completed on 31 May 2025, has resulted in a new combined business named VodafoneThree, the company said in a shareholder statement on Monday 2 June.
VodafoneThree is 51% owned by Vodafone and 49% by CK Hutchison Group Telecom Holdings Limited (CKHGT), which previously owned Three.
Vodafone will fully consolidate VodafoneThree in its financial results, and the Chief Executive Officer will be Max Taylor, who currently leads Vodafone UK. Three UK’s Darren Purkis has been appointed Chief Financial Officer of the new group.
What’s next?
VodafoneThree said it plans to invest £11 billion over the next 10 years – creating one of Europe’s most advanced 5G networks, giving millions of customers and businesses up and down the country a vastly superior mobile experience.
In its first year, VodafoneThree plans to invest £1.3 billion in capex. This will enable the company to accelerate its network deployment. Consistent with previously communicated expectations, the combined business is expected to deliver cost and capex synergies of £700 million per annum by the fifth year after completion and the transaction is expected to be accretive to Vodafone’s adjusted free cash flow from 2029 onwards.
Full alignment to Vodafone’s accounting policies is ongoing and pro forma financials will be provided in due course, the group said.
“High-quality network connectivity is critical to so many elements of daily life. It is also central to the UK’s economic growth prospects, important for the UK’s science and technology sectors, as well as for improving public services and narrowing the digital divide across the country,” VodafoneThree said.
“This significant investment in a 5G Standalone network will propel the UK’s mobile infrastructure to the forefront of European connectivity.”
The merger will create a new force in UK mobile, transform the country’s digital infrastructure and propel the UK to the forefront of European connectivity, said Margherita Della Valle, Vodafone Group Chief Executive.
“We are now eager to kick-off our network build and rapidly bring customers greater coverage and superior network quality. The transaction completes the reshaping of Vodafone in Europe, and following this period of transition we are now well-positioned for growth ahead.”
