Vodafone, CK Hutchison Plan to Combine U.K. Operations
Vodafone Group and CK Hutchison unveiled a long-expected combination of their U.K. telecom businesses, after talks that started last fall. Vodafone would own 51% of the business, CK Hutchison 49% and no cash would change hands, under the agreement, which…
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European regulators must approve. The combined company would have a value of at least $21 billion, with 27 million wireless customers. “From day one, millions of customers” of Vodafone UK and CK Hutchison's Three UK “will enjoy a better network experience with greater coverage and reliability at no extra cost, including through certain flexible, contract-free offers with no annual price increases, and social tariffs,” Vodafone said in a news release. The new company would cover more than 99% of the U.K. population with a 5G stand-alone network, “delivering to customers up to a six-fold increase in average data speeds by 2034,” Vodafone said. The companies plan to invest $14 billion in the U.K. over 10 years “to create one of Europe’s most advanced standalone 5G networks, in full support of UK Government targets,” Vodafone said.