Vodafone has announced a £4.3 billion ($5.8 billion) deal to take full ownership of VodafoneThree, the UK’s largest mobile operator by customer numbers.
The agreement will see Vodafone buy out the 49 per cent stake held by CK Hutchison through a share cancellation arrangement.
VodafoneThree was created in 2025 following the merger of Vodafone UK and Three, the UK arm of CK Hutchison, forming a dominant player in Britain’s telecoms market.
Vodafone said the move would accelerate its plans to strengthen digital infrastructure in the United Kingdom.
“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,” the company said in a statement on Tuesday.
The transaction is expected to be completed in the second half of 2026, subject to regulatory approvals.
Market analysts say the deal could provide a fresh start for the business, which has faced challenges including high debt levels and sluggish growth.
According to Dan Coatsworth, there are early signs of operational and financial improvement that could position the company for a turnaround.
“There are now tentative signs of improvement both operationally and financially, putting it in a better position to mount a comeback,” he said.
The acquisition forms part of Vodafone’s broader restructuring strategy under Chief Executive Officer Margherita Della Valle, who has been leading cost-cutting measures and portfolio optimisation since 2023.
The company has implemented thousands of job cuts and divested operations in key European markets, including Italy and Spain, as part of efforts to streamline its business.
Vodafone also reported improved performance in November, driven by a rebound in revenue in its core German market and the impact of its UK merger with Three.
The latest deal underscores Vodafone’s commitment to consolidating its position in the UK telecoms sector and driving long-term growth through infrastructure investment and operational efficiency.
