Vodafone and CK Hutchison announced on Wednesday a deal worth $19 billion to merge their mobile operations in the UK, creating a leading new market company to enhance competition and investment in the country, which has one of the most advanced standalone 5G networks in Europe. The new CEO of Vodafone stated that "the deal will change the game in the local market," adding that it is good news for customers, the government, and competitors.
Both companies confirmed that the UK will benefit from the creation of a third operator that is capable of sustaining itself and competing strongly, with a clear investment plan for the networks over the next 10 years, which will boost growth, create jobs, and foster innovation.
Under the terms of the deal, Vodafone will own 51% and Hutchison will own 49% of the merged entity, which will be led by Ahmed Essam, the current CEO of Vodafone in the UK. Darren Burkill, the CFO of Hutchison's Three UK, will take the same position in the new group.
Vodafone's shares rose by 3.6% following the announcement of the deal, even as they fell to their lowest level in 25 years at 71 pence.
