Vodafone Group will pay 4.3 billion pounds to acquire the 49% interest in VodafoneThree currently held by CK Hutchison, the companies announced on Tuesday. The transaction follows a capital reduction and share cancellation arrangement that transfers sole ownership of the joint venture to Vodafone.
VodafoneThree, formed in early-2023 through the combination of Vodafone UK and Three UK, is the largest mobile network operator in the United Kingdom and serves in excess of 28 million customers. According to the companies, the merger underpinning the joint venture was completed in May 2025. At the time of the announcement the joint venture had an enterprise value of roughly 13.85 billion pounds.
Under the terms disclosed, Vodafone will use its existing cash reserves to fund the purchase of CK Hutchison’s stake. The agreement is structured as a capital reduction with share cancellation, a mechanism that results in the consolidation of ownership within Vodafone.
The move hands Vodafone full control of the combined UK business created when Vodafone UK and Three UK merged their operations in early-2023. The two partners brought together their assets and customer bases to create what the companies describe as the country's largest mobile operator, and Vodafone’s acquisition of the remaining minority interest completes the ownership consolidation.
The announcement provides limited detail beyond the headline purchase price, the ownership transfer mechanism, and the stated funding source. The companies reported the enterprise value of the joint venture and the completion date of the merger, but did not expand in this announcement on potential regulatory clearances, post-transaction governance changes, or an integration timetable.
For market participants and analysts, the transaction is a significant capitalization event for the UK telecom sector: it replaces a 49% minority partner with a single owner and crystallizes valuation at the price agreed between Vodafone and CK Hutchison.
Summary of transaction facts
- Purchase price: 4.3 billion pounds ($5.8 billion)
- Seller: CK Hutchison, holder of a 49% stake in VodafoneThree
- Buyer: Vodafone Group
- Transaction mechanics: capital reduction and share cancellation
- Funding: Vodafone stated it will use existing cash reserves
- VodafoneThree scale: largest UK mobile operator with over 28 million customers; enterprise value about 13.85 billion pounds
- Original joint venture formation: early-2023; merger completion cited as May 2025