Vodafone to Buy VodafoneThree for £4.3bn, Targeting £700m Synergies
Vodafone will acquire CKHGT’s 49% stake in VodafoneThree for £4.3bn ($5.8bn) in cash to gain full ownership of the UK’s largest mobile provider. Completion in H2 2026 upon UK security approval values VodafoneThree at £13.85bn EV and aims for £700m annual cost and capex savings by FY2030.
1. Deal Structure and Timeline
Vodafone will cancel CKHGT’s shares and pay £4.3bn in cash from its existing resources to acquire the remaining 49% of VodafoneThree. The transaction is expected to close in H2 2026 following approval under the UK National Security and Investment Act.
2. Valuation and Financial Impact
The deal implies an enterprise value of £13.85bn for VodafoneThree, which held net debt of £5.08bn as of March 31, 2026. Funding via cash avoids new borrowing but increases cash outflow and shifts full debt responsibility onto Vodafone’s balance sheet.
3. Integration and Operational Progress
Since merging Vodafone UK with Three UK in May 2025, core systems and network infrastructure have been synchronised, boosting coverage, speed and reliability. The consolidated entity has begun cross-selling home broadband and fixed wireless access while retaining its multi-brand approach.
4. Synergy Targets and Outlook
Vodafone projects annual cost and capex savings of £700m by FY2030 through streamlined operations and optimised network management. Full ownership is expected to accelerate 5G rollout in the UK, enhance customer experience and drive long-term shareholder value.