VodafoneThree Mega-Merger Completed with CEO and CFO Announced
Deal News | Jun 02, 2025 | Business Cloud
The telecom giants Vodafone and Three have successfully completed their 16.5 billion merger, forming the new entity VodafoneThree. The merger received approval from the Competition and Markets Authority, with a commitment to invest extensively in the UK network, including 11 billion for 5G rollout. The combined company is majority-owned by Vodafone and led by Max Taylor as CEO and Darren Purkis as CFO. Vodafone will consolidate VodafoneThree in its financial results, despite reporting fiscal losses in the past year. The merger is expected to yield significant synergies and a massive transformation of the UK's digital infrastructure, with planned initial investments in capex. The combination aims to elevate the UK's position in European connectivity and provide enhanced services to consumers.
Sectors
- Telecommunications
- Mergers and Acquisitions
Geography
- United Kingdom – The merger focuses on Vodafone UK and Three UK, targeting the UK telecommunications market.
- Europe – The deal impacts European connectivity, demonstrating synergy efforts and investment strategies within the broader European market.
Industry
- Telecommunications – The merger and restructuring activities are directly related to the telecommunications sector, enhancing mobile and digital infrastructure.
- Mergers and Acquisitions – The article describes a significant M&A transaction in the telecommunications sector, involving a merger of Vodafone UK and Three UK.
Financials
- 16.5 billion – The total value of the merger between Vodafone and Three UK.
- 11 billion – The amount committed to network upgrades and 5G rollout by the merged entity.
- 700 million – The expected annual cost and capex synergies by the fifth year post-merger.
- 1.3 billion – The planned initial capex investment by VodafoneThree in its first year.
- 1.3 billion – The net cash returned to CK Hutchison Group from the transaction.
- 346 million – Vodafone's loss for FY25, following a profit of 3.1 billion in FY24.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Vodafone Group Plc | Merging Company | Company | A multinational telecommunications company engaged in completing a merger with Three UK. |
| CK Hutchison Group Telecom Holdings Limited | Merging Company | Company | A subsidiary of CK Hutchison Holdings Limited involved in the merger with Vodafone UK. |
| CK Hutchison Holdings Limited | Parent Company | Company | The parent company of CK Hutchison Group Telecom Holdings, involved in the merger. |
| VodafoneThree | Combined Entity | Company | The newly formed company resulting from the merger of Vodafone UK and Three UK. |
| Max Taylor | CEO of VodafoneThree | Person | The newly appointed CEO of VodafoneThree, previously led Vodafone UK. |
| Darren Purkis | CFO of VodafoneThree | Person | The newly appointed CFO of VodafoneThree, previously part of Three UK. |
| Margherita Della Valle | Vodafone Group CEO | Person | The CEO of Vodafone Group who commented on the merger's impact. |
| Canning Fok | Deputy Chairman of CK Hutchison | Person | The deputy chairman of CK Hutchison commenting on the merger benefits. |