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Vodafone UK Announces Huge Merger

Sakwa Kombo by Sakwa Kombo
June 14, 2023
in News
Reading Time: 2 mins read
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Vodafone a Safaricom's shareholder announces merger in Thhe UK

Vodafone UK and Three UK are officially merging. Due to the merger, Vodafone Group PLC will own 51% of the combined business.

Margherita Della Valle, Vodafone Group Chief Executive, said: “The merger is great for customers, great for the country and great for competition. It’s transformative as it will create a best-in-class – indeed best in Europe – 5G network, offering customers a superior experience. As a country, the UK will benefit from the creation of a sustainable, strongly competitive third scaled operator,”

However, the deal is subject to scrutiny from the Competition and Markets Authority (CMA). Recently in 2021, the CMA approved the merger of Virgin Media and O2 networks.

The companies believe this is an opportunity to build one of Europe’s leading 5G networks. Additionally, they aim to transform the customer experience, and give better choice and value to their UK customers.

“The combination of Vodafone UK and Three UK will bring more choice and better value to customers nationwide.” Stated Ahmed Essam, Vodafone UK Chief Executive.

CEO Ahmed Essam will take over as the overall CEO while the current Three UK CFO Darren Purkis will take the role of Chief Finance Officer (CFO). The companies believe the merger will improve competition among UK telcos and yield better results for the consumers.

Vodafone Group PLC is one of the world’s largest communications companies by revenue. The group owns the UK subsidiary. On the other hand, Three UK is owned by CK Hutchison Group Telecom Holdings Limited (“CKHGT”). Kenyan football fans will know Three UK as a recent shirt sponsor for Chelsea football club.

Vodafone Safaricom Shares

The Kenyan telco Safaricom lists Vodacom (35 per cent) and Vodafone Group PLC (5 per cent) among its shareholders.  Although, it is worth noting that Vodafone Group PLC is a majority shareholder in Vodacom with 65.1% holding.

Kenyans will be keen to see what this merger will mean for Safaricom the leading telco in the country. Furthermore, the company has shares in other leading telcos across Africa.

Tags: SafaricomVodafone
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Sakwa Kombo

Sakwa Kombo

My Bio is in my written articles.

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