Vodafone Group Plc and CK Hutchison Group Telecom Holdings Limited signed the merger between Vodafone UK and Three UK on May 31, 2025. The newly merged entity, VodafoneThree, is now fully operational, paving the way for a multi-billion-pound investment in Britain’s digital future.
Vodafone will own 51% of the new joint venture, and CK Hutchison’s telecom business, CKHGT, will own 49%. Vodafone is set to fully integrate the newly formed VodafoneThree into its financial structure. The unified entity will be led by Max Taylor, formerly at the helm of Vodafone UK, as its Chief Executive. Meanwhile, Darren Purkis, who previously oversaw finances at Three UK, now takes charge as the Chief Financial Officer for the joint operation.
VodafoneThree will invest £11B over 10 years to build one of Europe’s most advanced 5G Standalone (SA) networks.
The investment will bring important mobile connectivity improvements for customers and businesses right across the UK. The new company will invest £1.3 billion in capital expenditure in its first year to ramp up network rollouts. The merger is expected to release £700 million of annual synergies by the fifth year from operational and capital efficiencies. Vodafone also anticipates the deal to boost its adjusted free cash flow from FY29.
Margherita Della Valle, Chief Executive of Vodafone Group, described the merger as a transformational moment for the company’s European transformation strategy.
“This merger sets the stage for a bold new era in UK mobile, reshaping digital access and positioning Britain as a leader in Europe’s connectivity landscape. We are now keen to start our network build and bring customers greater coverage and better network quality quickly.”
The investment not only boosts UK 5G with faster internet and better coverage but also supports tech growth, innovation, and public service upgrades.
“Canning Fok, who serves as both Deputy Chairman of CK Hutchison and Executive Chair of CKHGT, highlighted how expanding operational scale is essential for delivering the next evolution of mobile connectivity.”
Vodafone and Three’s merger enables large-scale investment in world-class networks, unlocking £1.3 billion in shareholder value.
The combined entity’s increased size will support a wider scope of services and more efficient infrastructure, subjecting competitors such as BT and Virgin Media O2 to competitive pressure. The merger also supports Vodafone’s strategic focus on remolding its European business, following a string of other divestitures and mergers in the region.
Vodafone Three aims to help the UK lead in digital innovation by providing fast, reliable mobile connectivity, thereby driving growth and development.
The firm confirmed alignment with Vodafone accounting policies is ongoing, with pro forma financials to be released soon.
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