Vodafone (VOD.L) is in talks with CK Hutchison (0001.HK) about merging their businesses in Britain to create a market leading mobile network that could accelerate the roll-out of 5G services and expand broadband availability.
Vodafone said on Monday it would own 51 per cent and Hutchison 49 per cent under the deal being discussed, with the stakes achieved by adjusting ownership of debt rather than exchanging any cash.
Combining Vodafone UK and Hutchison’s Three, Britain’s third and fourth largest networks respectively, would create a business with about 27 million customers – more than current leaders BT’s (BT.L) EE and Virgin Media O2.
“By combining our businesses, Vodafone UK and Three UK will gain the necessary scale to be able to accelerate the rollout of full 5G in the UK and expand broadband connectivity to rural communities and small businesses,” Vodafone said in a statement.
The two companies hope to strike a deal by the end of the year, according to an earlier Sky report.
Source - database | Page ID - 1168 - en