Five years in the making, the merger between Vodafone and Three is now complete. This £16.5 billion amalgamation marks a pivotal moment for the UK mobile sector, forming a new leader called VodafoneThree with a customer base of 29 million. The deal is hailed as one of the most significant changes in UK mobile history.
Vodafone holds a 51% stake in the newly formed company, while CK Hutchison Group owns the remaining 49%. The merger sets the stage for ambitious growth, but also presents challenges as the integration process begins.
Leadership of VodafoneThree falls to Max Taylor, who previously held senior roles at EE. He brings with him significant industry experience, having navigated complexities in a similar merger between Orange and T-Mobile in the UK. Darren Purkis from Three UK takes on the role of chief financial officer.
Looking ahead, VodafoneThree plans to invest £11 billion over ten years to establish one of Europe’s most advanced 5G networks. Their investment strategy will initially focus on £1.3 billion to expedite the standalone 5G deployment in the UK. With these steps, VodafoneThree aims to provide better connectivity and support digital transformation across different sectors.
The merger has received a mixed reaction. According to Kester Mann from CCS Insight, the merger will necessitate merging diverse resources and technologies, posing a significant task for the new CEO, Taylor. Decisions around brand identity, retail presence, and workforce management will also require careful navigation. Canning Fok of CK Hutchison underscores the importance of scale in providing world-class service, highlighting the merger’s role in unlocking shareholder value and assuring competitive advantage.
