London (AFP) – British mobile phone giant Vodafone announced Tuesday it has agreed a £4.3 billion ($5.8 billion) deal to take full ownership of the country’s biggest mobile phone operator, VodafoneThree. Under the agreement, Vodafone will buy out Hong Kong-based CK Hutchison’s 49-percent stake in the company through a share cancellation.
VodafoneThree was formed last year by a merger between Vodafone UK and Three, the UK division of CK Hutchison, creating Britain’s largest mobile operator in terms of customer numbers. “Now is the right time to take full ownership of VodafoneThree, enabling us to move at an even faster pace to transform the UK’s digital infrastructure,” Vodafone said in a statement on Tuesday.
The group said the deal is set to be completed in the second half of 2026. “The transaction signals a new lease of life for a business that was bloated with debt and struggled with low growth,” said AJ Bell head of markets Dan Coatsworth. “There are now tentative signs of improvement both operationally and financially, putting it in a better position to mount a comeback,” he added.
Vodafone has been undergoing a sweeping restructuring under chief executive Margherita Della Valle since 2023, including thousands of job cuts and the sale of its operations in Italy and Spain. The company gave a positive outlook in November after an unexpected revenue rebound in its main market Germany in its first half and following its UK merger with Three. Vodafone will publish its annual results next week.
© 2024 AFP
