Vodafone Group Public Limited Company (VOD) and CK Hutchison Complete UK Merger, Plan £11B Investment

Vodafone Group Public Limited Company (NASDAQ:VOD) and CK Hutchison Group Telecom Holdings Limited (CKHGT) have announced that Vodafone UK and Three UK completed their merger on May 31.

Vodafone Group Public Limited Company (VOD) and CK Hutchison Complete UK Merger, Plan £1.3B Investment

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The combined new business called VodafoneThree will be owned 51% by Vodafone Group Public Limited Company (NASDAQ:VOD) and 49% by CKHGT. The merged business plans to invest £11 billion over the next decade, creating one of Europe’s most advanced 5G networks.

During the first year, VodafoneThree will invest £1.3 billion ($1.76 billion) in capital expenditure to accelerate its network deployment. The business is likely to deliver annual capex and cost synergies of £700 million by the fifth year.

Vodafone Group Public Limited Company (NASDAQ:VOD) will fully consolidate the new business in its financial results. The transaction is expected to be accretive to its adjusted free cash flow (FCF) from fiscal year 2029 onwards.

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