Vodafone and CK Hutchison Near $19 Billion Merger Deal for UK Telecoms Businesses

The ownership of the merged entity is planned to be split, with 51% held by Vodafone and 49% by Hutchison, the Hong Kong-based conglomerate. The proposed merger could also allow CK Hutchison to exit the UK telecoms market, according to reports. However, the ownership structure is likely to be subject to intense regulatory scrutiny.

Highlights

  • Vodafone and CK Hutchison are reportedly nearing a merger deal for their UK telecoms businesses.
  • The deal is expected to be valued at around 15 billion pounds ($19bn).
  • The two telecoms giants have been competing fiercely in the UK market for years.

Follow Us

Vodafone

Vodafone and CK Hutchison are reportedly nearing a merger deal for their UK telecoms businesses in a move that could create the country's biggest mobile operator, said a Reuters report. The deal is expected to be valued at around 15 billion pounds ($19bn), with the equity of the combined group valued at 9 billion pounds and approximately 6 billion pounds of debt. Negotiations have been ongoing but are expected to be concluded this month, with an announcement expected to follow soon after.




Read More - ATC Records $16 Million Unrealised Loss on Vodafone Idea’s OCDs

The ownership of the merged entity is planned to be split, with 51% held by Vodafone and 49% by Hutchison, the Hong Kong-based conglomerate. The proposed merger could also allow CK Hutchison to exit the UK telecoms market, according to reports. However, the ownership structure is likely to be subject to intense regulatory scrutiny.

CK Hutchison's senior leadership met with British government officials in March to gain political support for the deal. Canning Fok, Hutchison's co-managing director, also held discussions with Vodafone's interim Chief Executive, Margherita della Valle, who has since been permanently appointed to the role.

Read This Now- Vodafone Idea (Vi) Brings Wi-Fi Calling for Users in Kerala and Karnataka

The two telecoms giants have been competing fiercely in the UK market for years. The merger could bring together Vodafone's 18 million UK mobile customers with Three UK's 10 million subscribers. However, the deal is expected to face stiff opposition from competitors and regulators. In 2016, Hutchison abandoned a 10.3 billion pounds merger between Three and O2 after it was blocked by the European Commission.

If the deal goes ahead, it would be the latest in a series of telecoms mergers, following the recent merger of Virgin Media and O2. The move towards consolidation is driven by the need to invest in next-generation 5G networks, which require significant investment.

Reported By

Tanuja is a passionate technology and telecom buff who has been following the telecom industry for several years now.

Recent Comments

Kiran Fernandes :

Cool, will await your update. I hope Intra works well for browsing. Maybe Jio might add the 5G tariff in…

Reliance Jio, OTT, Amazon services Face Major Outage Across India

Faraz :

The auction is set to begin on 25th June (earlier it was supposed to commence on 20th May and then…

Reliance Jio, OTT, Amazon services Face Major Outage Across India

Kiran Fernandes :

Faraz, I've had this issue multiple times too, but on 4G. I still dont have a 5g handset yet. Anyway,…

Reliance Jio, OTT, Amazon services Face Major Outage Across India

Shivraj Roy :

Thanks to the 1Rs 10gb data plan on vi To save my day

Reliance Jio, OTT, Amazon services Face Major Outage Across India

Load More
Subscribe
Notify of
0 Comments
Inline Feedbacks
View all comments