Vodafone UK in talks with CK Hutchison's Three for possible merger
India Today
Telecom major Vodafone has recently confirmed that its United Kingdom-unit is in talks with CK Hutchison, the owner of Three UK, for a possible merger.
Vodafone is in talks with CK Hutchison about merging their businesses in Britain to create a market leading mobile network that could accelerate the roll-out of 5G services and expand broadband availability.
Vodafone said on Monday it would own 51% and Hutchison 49% under the deal being discussed, with the stakes achieved by adjusting ownership of debt rather than exchanging any cash.
Combining Vodafone UK and Hutchison's Three, Britain's third and fourth largest networks respectively, would create a business with about 27 million customers - more than current leaders BT's (BT.L) EE and Virgin Media O2.
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"By combining our businesses, Vodafone UK and Three UK will gain the necessary scale to be able to accelerate the rollout of full 5G in the UK and expand broadband connectivity to rural communities and small businesses," Vodafone said in a statement.
The two companies hope to strike a deal by the end of the year, according to an earlier Sky report.
Shares in Vodafone were up 2.1% at 103 pence by 1124 GMT, compared with a 0.6% fall in the FTSE 100 (.FTSE).
