Vodafone Group has reached an agreement to take full control of VodafoneThree by acquiring CK Hutchison Group Telecom’s (CKHGT) 49% stake in the joint venture (JV).
The £4.3bn ($5.84bn) transaction will occur through a cancellation of CKHGT’s shares and will be funded from Vodafone’s existing cash resources.
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The transaction is expected to be completed in H2 2026, following approval under the UK National Security and Investment Act. After completion, Vodafone will become the sole owner of the UK’s largest mobile provider and one of its fastest growing broadband operators.
The VodafoneThree entity was established following the merger of Vodafone UK and CKHGT’s Three UK business, which was initially announced in June 2023 and completed in May 2025. Since then, Vodafone held a 51% share, with CKHGT retaining 49% in VodafoneThree.
The original terms saw CKHGT contribute its UK business and £1.7bn in debt, while Vodafone contributed its business alongside £4.3bn in debt. Since the merger’s completion, both partners have injected an additional £800m in equity into the company.
Financial records as of 31 March 2026 place VodafoneThree’s net debt at £5.08bn, and the current deal implies an enterprise value of £13.85bn for VodafoneThree.
The integration of Vodafone UK and Three UK has already involved synchronising core systems and combining network infrastructure, which according to Vodafone has resulted in improvements to coverage, speed, and reliability.
Commercial activity since the merger includes the cross-selling of home broadband and fixed wireless access to a consolidated customer base. The company’s multi-brand approach remains in place, meaning existing brands within VodafoneThree are expected to continue operating as they do presently.
Vodafone projects significant synergies as a result of the consolidation. The company aims to achieve annual cost and capital expenditure savings of approximately £700m by its 2030 financial year, arising from streamlined operations and optimised network management.
The company attributes the acceleration of network upgrades and customer experience improvements to integration progress made since the merger.
Vodafone Group chief executive Margherita Della Valle said: “A year on from the merger, the team has made remarkable progress, as we maximise the full potential of VodafoneThree and capture the significant synergies.
“I’m delighted that we will now have full ownership of VodafoneThree as we roll out one of Europe’s most advanced 5G networks, provide the UK’s best customer experience and drive long-term value for our shareholders.”
Once the transaction is completed, Max Taylor will remain as CEO, leading the existing VodafoneThree executive team. The operational structure and strategic direction are anticipated to be maintained during and after the ownership transition.
The buyout qualifies as a related party transaction under UK listing rules, reflecting the fact both Vodafone and CKHGT are significant shareholders in VodafoneThree prior to the deal.
The Vodafone board has reviewed and approved the transaction terms, with Morgan Stanley & Co. International acting as sponsor and adviser in accordance with regulatory requirements. Morgan Stanley based its evaluation on commercial assessments provided by Vodafone’s board.
The deal is expected to increase Vodafone Group’s pro forma net leverage by 0.4 times, in part due to the share repurchase funded in cash.
