Vodafone Group Plc has agreed to acquire full ownership of VodafoneThree by buying out the 49 percent stake held by CK Hutchison Group Telecom Holdings Limited for £4.3 billion (€4.9 billion), giving Vodafone sole control of the UK’s largest mobile operator.
The transaction will be carried out through a cancellation of shares in the VodafoneThree joint venture, which was formed following the merger of Vodafone UK and Three UK completed in May 2025. Once the deal closes, Vodafone will own 100 percent of the combined business.
Vodafone said the move follows strong early progress integrating the two operators. According to the company, network quality improvements have been delivered ahead of schedule as VodafoneThree works toward building what it describes as the UK’s best 5G network. The company also reported improved customer retention at Three and successful cross-selling of broadband and fixed wireless products across the enlarged customer base.
Chief Executive Margherita Della Valle said the integration had exceeded expectations, adding that full ownership would allow Vodafone to “move at an even faster pace” in upgrading the UK’s digital infrastructure and extracting merger synergies. Vodafone expects VodafoneThree to deliver £700 million in annual cost and capital expenditure synergies by fiscal year 2030.
The transaction implies an enterprise value for VodafoneThree of £13.85 billion. Vodafone said it plans to fund the acquisition from existing cash resources, with the deal expected to increase the group’s pro forma net leverage by 0.4x. As of 31 March 2026, VodafoneThree had net debt of £5.08 billion.
The buyout remains subject to approval under the UK National Security and Investment Act and is expected to complete in the second half of 2026.
Max Taylor will remain chief executive of VodafoneThree following completion, and Vodafone said there will be no change to the company’s multi-brand strategy.
The transaction is Vodafone’s latest strategic move to consolidate control over core European telecom assets as operators seek scale to fund 5G investment and infrastructure upgrades in increasingly competitive markets.
