Vodafone Mulls Merging UK Unit With CK Hutchison's Three

Telecoms group Vodafone Group Plc VOD is in talks to combine its U.K. operations with Three UK, the mobile operator owned by Hong Kong infrastructure conglomerate CK Hutchison Holdings LTD CKHUY, the Financial Times reports.
The deal could help consolidate the British mobile market as Vodafone faces pressure from Europe’s most prominent activist investor, Cevian Capital, to simplify its business and improve returns.
Although Vodafone’s share price has gained by 3% since 2022, it has lost 44% of its value over the past five years.
The bringing together of the third and fourth-largest mobile network operators in Britain could invite regulatory scrutiny.
Meanwhile, Three reported flat quarter-on-quarter revenues of £582 million despite increasing net new customers since mid-2020.
Analysts had previously speculated that Vodafone could seek to buy Three, but it would need to meet CK Hutchison’s hefty price expectations.
Price Action: VOD shares traded higher by 1.24% at $14.75 in the premarket on the last check Thursday.
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