Jun 14, 2023 - Economy

Vodafone agrees to U.K. mobile megamerger

Dan Primack

Illustration of a handshake forming part of the Union Jack. — Illustration: Shoshana Gordon/Axios

Vodafone agreed to merge its British operations with Three UK, a unit of Hong Kong-based CK Hutchison.

Why it matters: This would create the U.K.'s largest mobile operator with 27 million customers, topping current leaders BT Group and Virgin Media O2.

Details: Vodafone would own 51% of the new company, with CK Hutchinson owning the remainder, with the deal expected to close by year-end.

The bottom line: Expect a bruising regulatory battle.

One large labor union already has come out in opposition, arguing everything from higher consumer costs to job losses to concerns of Chinese influence.
Moreover, Three UK previously was blocked from merging with O2, although that was by the EU prior to Brexit.
In an effort to appease regulators, the companies pledged to invest £11 billion over the next decade.

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Vodafone agrees to U.K. mobile megamerger

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