OUR Vodafone Group and CK Hutchison Holdings are set to strike a £15bn deal that will bring together telecommunications their activities in Great Britain, forming the country’s largest group of mobile telephony service providers, according to a related publication by the Financial Times. The proposed combination, which will have a base of 28 million customers, is expected to have an equity value of £9 billion, the paper said, citing several people with knowledge of the matter. In addition, the report says the newly formed group will take on nearly £6bn of debt, boosting the value of its venture to £15bn.

According to a British newspaper, the agreement is expected to be announced this month. According to an earlier Bloomberg report in March, the two corporate giants were putting the finishing touches on their planned alliance. Even earlier, in October 2022, the two groups of companies Vodafone and CK Hutchison, owner of the Three UK mobile phone division, confirmed that they were in serious talks to merge their UK businesses. Under the proposed terms for this period, according to moneyreview.gr, Vodafone will own 51% of the new group in the UK telecommunications sector, with the remaining 49% owned by CK Hutchison.

The discussions took place in an atmosphere of upheaval and reaction from both the British government and the country’s competent competition authorities. In addition, at the end of last year, the CEO of the giant Vodafone, Nick Reed, left his duties. However, it should be emphasized here that the question of a possible alliance has been discussed for a number of years. Vodafone has previously partnered with CK Hutchison in other telecommunications markets such as Australia.

The leaders of the two groups believe that combining their activities in the UK market will give them the scale they need to accelerate the adoption of 5G mobile networks, as well as increase their competition with industry companies such as the BT Group. Ltd. In conclusion, according to the British newspaper Financial Times, the planned union could take more than 12 months to get the necessary approval from the competent regulators of the UK telecommunications sector.