Staff Writer
In order to hasten the introduction of speedier 5G connection, mobile phone giant Vodafone has agreed to merge its British operations with Three UK, owned by Hong Kong-based CK Hutchison.
Britain’s embargo on Chinese tech firm Huawei, a significant supplier of equipment for mobile telephone networks, has hindered the rollout of 5G throughout the UK.
A new combined group, which is expected to have a value of £16.5 billion ($21 billion), according to a joint statement from Vodafone and CK Hutchison, is anticipated to be completed by the end of next year.
According to Vodafone Chief Executive Margherita Della Valle, who just announced the elimination of 11,000 employees at the company, “the merger is great for customers, great for the country, and great for competition.”
She continued, “It’s transformative because it will build the best-in-class 5G network in Europe, providing customers with an improved experience.
According to the statement, the merger will result in network investments totaling £11 billion over ten years.
The partnership, according to CK Hutchison’s group co-managing director Canning Fok, “will have the scale needed to deliver a best-in-class 5G network for the UK, transforming mobile services” for users.
“This will realize material synergies, lower net financial debt, and further strengthen its financial profile,” he continued. “It will also unlock significant value for CK Hutchison and its shareholders.”
Vodafone will receive 51% of the combined group as part of the deal, and CK Hutchison will receive the remaining 49%.
