Vodafone Confirms Potential Tie-Up With This Peer

After years of speculation, Vodafone Group Plc VOD confirmed discussions with CK Hutchison Holdings LTD CKHUF about a possible combination of their U.K. businesses.
The deal would involve combining Vodafone UK and Three UK, with Vodafone holding 51% and CK Hutchison owning 49% of the new unit.
The U.K. Government rightly sees 5G as transformational for the economy and society and critical to the country becoming more competitive in an increasingly digital world.
"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," VOD said in a statement.
Vodafone has teamed up with CK Hutchison in other markets, including Australia, Bloomberg reports.
The report added that Vodafone CEO Nick Read is trying to consolidate in critical markets while facing pressure from shareholders, including Europe's most prominent activist fund, Cevian Capital AB.
Private equity firms competed for a stake in Vodafone's wireless towers unit, Frankfurt-listed Vantage Towers AG VTAGY, worth €13.4 billion ($13.4 billion).
Vodafone reported first-quarter FY23 revenue growth of 1.6% year-on-year to €11.28 billion, mainly driven by service revenue growth in Europe and Africa.
The service revenue grew 1.3% Y/Y to €9.51 billion.
Price Action: VOD shares traded higher by 3.80% at $11.76 on the last check Monday.
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