Vodafone to take full ownership of UK mobile operator

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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.

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Under the agreement, Vodafone will buy out Hong Kong-based CK Hutchison’s 49-percent stake in the company through a share cancellation.

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VodafoneThree was formed last year by a meger between Vodafone UK and Three, the UK division of CK Hutchison, creating Britain’s largest mobile operator in terms of customer numbers.

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“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.

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The group said the deal is set to be completed in the second half of 2026.

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“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.

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“There are now tentative signs of improvement both operationally and financially, putting it in a better position to mount a comeback,” he added.

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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.

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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.

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Vodafone will publish its annual results next week.

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AFP

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