Vodafone on Tuesday announced it has agreed a £4.3 billion ($5.8 billion) deal to take full ownership of VodafoneThree, the country’s largest mobile operator by customer base.
Under the agreement, Vodafone will acquire the 49 per cent stake held by Hong Kong-based CK Hutchison through a share cancellation.
VodafoneThree was created last year following the merger of Vodafone UK and Three, the UK arm of CK Hutchison, forming Britain’s biggest mobile network operator in terms of subscribers.
“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.
The company added that the transaction is expected to be completed in the second half of 2026.
According to AJ Bell head of markets, Dan Coatsworth, “The transaction signals a new lease of life for a business that was bloated with debt and struggled with low growth.
“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 broad restructuring programme under its chief executive, Margherita Della Valle, since 2023, which has included thousands of job cuts and the divestment of operations in Italy and Spain.
The group had issued a more optimistic outlook in November after a stronger-than-expected revenue recovery in Germany, its core market, alongside progress following its UK merger with Three.
Vodafone is scheduled to release its annual results next week.