Vodafone Group has completed the acquisition of CK Hutchison Group Telecom Holding’s 49 percent stake in VodafoneThree for £4.3 billion (€4.9 billion), giving Vodafone 100 percent ownership of the UK’s largest mobile operator.
The transaction represents a major step in Vodafone’s UK strategy, giving the telecom group full control over VodafoneThree as it accelerates network investment, integration and growth across mobile and broadband services.
Vodafone funded the £4.3 billion transaction entirely from its existing Group cash resources.
The combination is also expected to generate substantial financial benefits. Vodafone is targeting £700 million in annual cost and capital expenditure synergies by FY30, providing a significant opportunity to improve operating efficiency and returns from its enlarged UK business.
Vodafone Group Chief Executive Margherita Della Valle said full ownership would enable the company to move faster in the next phase of developing one of Europe’s leading telecom networks.
Investors will receive further details on the company’s plans on 8 October 2026, when Vodafone hosts a VodafoneThree Investor Briefing. The company plans to outline VodafoneThree’s strategy, growth ambitions and expected value creation over the coming years.
VodafoneThree has emerged as the UK’s largest mobile operator following the combination of Vodafone UK and Three UK, which completed on 31 May 2025. Vodafone initially owned 51 percent and CK Hutchison 49 percent, before Vodafone agreed in May 2026 to acquire the remaining stake for £4.3 billion (€4.9 billion). The enlarged operator represents 17 percent of Vodafone Group adjusted EBITDAaL in FY26.
Vodafone said the merged network is designed to benefit more than 50 million customers, including customers served through its retail and wholesale relationships. VodafoneThree’s mobile contract base declined by a net 53,000 customers in FY26, reflecting Three UK customer losses and disconnections of very-low-value business accounts. However, its value brands VOXI and SMARTY added 189,000 customers during the year. Vodafone also reported improved consumer churn across all its brands following the merger.
VodafoneThree is also one of the UK’s fastest-growing broadband providers. It delivered a record 222,000 fixed broadband net additions in FY26, alongside 56,000 fixed wireless access net additions. In Q1 FY26 alone, its broadband customer base increased by 44,000. At that point, VodafoneThree could offer gigabit-speed connectivity to 20.3 million UK households.
The centrepiece of VodafoneThree’s strategy is an £11 billion investment programme over 10 years to build one of Europe’s most advanced 5G networks. The original plan envisaged investing more than £6 billion during the first five years, with £1.3 billion of capex planned in the first year following completion of the merger.
VodafoneThree aims to extend its 5G Standalone network to more than 99 percent of the UK population by 2034. The combined network is expected to almost double network capacity compared with Vodafone UK and Three UK operating separately and potentially deliver an up to six-fold improvement in average data speeds by 2034, including multi-gigabit speeds. Earlier commitments also envisaged covering every UK school and hospital with 5G Standalone by 2030.
With 100 percent ownership, a £4.3 billion (€4.9 billion) buyout, an £11 billion network investment programme and £700 million of targeted annual cost and capex synergies by FY30, Vodafone is positioning VodafoneThree as a central pillar of its UK growth and network strategy.
BABURAJAN KIZHAKEDATH
