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Highlights

  • Vodafone and Three UK merger completed, forming new entity “VodafoneThree”

  • VodafoneThree to invest £11 billion over 10 years to expand UK 5G infrastructure

  • Combined business aims for £700 million annual synergies by year five

Vodafone Group Plc (LSE:VOD) and CK Hutchison Group Telecom Holdings Limited announced the successful completion of the merger between Vodafone UK and Three UK on 31 May 2025. The merged entity is named VodafoneThree.

Ownership of the new business is split with Vodafone holding 51% and CK Hutchison Group Telecom Holdings Limited (CKHGT) retaining 49%. Vodafone will fully consolidate VodafoneThree in its financial statements. The leadership team includes Max Taylor, currently CEO of Vodafone UK, who has been appointed Chief Executive Officer of VodafoneThree. Darren Purkis, from Three UK, will serve as the company’s Chief Financial Officer.

Investment in 5G Infrastructure

VodafoneThree has committed to invest £11 billion over the next decade to develop one of Europe’s most advanced 5G networks. In its first year, the company plans to invest £1.3 billion in capital expenditure to accelerate network rollout and improve nationwide connectivity.

The merger is expected to generate cost and capital expenditure synergies of £700 million annually by the fifth year following the completion of the transaction. Vodafone projects the transaction will contribute positively to its adjusted free cash flow from the financial year 2029 onward.

The integration of both companies’ financial reporting and operational frameworks is ongoing, and pro forma financials will be released in due course.

Strategic Implications for UK Connectivity

VodafoneThree aims to deliver wide-reaching improvements to mobile service quality and coverage across the UK. The deployment of a 5G Standalone network is intended to enhance connectivity for both consumers and businesses, enabling new opportunities across various sectors including science, technology, public services, and digital infrastructure.