Vodafone agrees £4.3bn deal to buy CK Hutchison out of VodafoneThree, subject to approval

Vodafone is to take full ownership of its VodafoneThree business in the UK after striking a £4.3 billion deal to buy out partner CK Hutchison. The joint venture was formed last year after the merger of mobile operators Vodafone and Three in the UK, with Vodafone holding 51% and Hong Kong-based Three owner CK Hutchison 49%.

VodafoneThree became the UK’s largest mobile operator following the deal and is one of the country’s fastest-growing broadband providers. The companies said the new transaction values VodafoneThree at £13.85 billion including debts. Executives said the integration of the merged brands has made a strong start, putting the business on track to secure around £700 million of annual cost efficiencies by 2030.

Margherita Della Valle, chief executive of Vodafone Group, said: “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.” Under the deal, Max Taylor will continue as chief executive of VodafoneThree, and the company said there will be no change to its multi-brand strategy.

CK Hutchison Group co-managing directors Frank Sixt and Dominic Lai called the transaction “a win-win for the group and for our partners,” saying it generates substantial cash proceeds and crystallises solid value from their investment. Completion is subject to regulatory approval, including under the UK National Security and Investment Act, and is expected in the second half of this year.

Vodafone has more than 360 million mobile and broadband customers globally.