British telecoms group Vodafone has announced plans to take full ownership of VodafoneThree in a deal valued at £4.3 billion ($5.8 billion), marking a significant step in its ongoing restructuring strategy.
The agreement will see Vodafone buy out the 49 per cent stake currently held by Hong Kong-based CK Hutchison through a share cancellation arrangement. Upon completion, Vodafone will assume complete control of the UK’s largest mobile network operator by customer base.
VodafoneThree was established in 2025 following the merger of Vodafone UK and Three UK, combining their operations to create a dominant player in Britain’s telecoms market.
In a statement released on Tuesday, Vodafone said the acquisition would allow it to accelerate the development of the United Kingdom’s digital infrastructure and strengthen its competitive position in the sector.
“Now is the right time to take full ownership of VodafoneThree, enabling us to move at an even faster pace to transform the UK’s digital infrastructure,” the company said.
The transaction is expected to be finalised in the second half of 2026, subject to regulatory approvals and other closing conditions.
Industry analysts say the move could help revitalise the business, which has faced challenges including high debt levels and sluggish growth. Dan Coatsworth, Head of Markets at AJ Bell, noted that early signs of operational and financial improvement are beginning to emerge, suggesting the company may be positioned for a turnaround.
The acquisition comes as Vodafone continues a broad restructuring programme under Chief Executive Margherita Della Valle. Since taking the helm in 2023, she has overseen cost-cutting measures, including workforce reductions, and divestments of operations in key European markets such as Italy and Spain.
The company had earlier signalled improved performance following a rebound in revenue in its core German market, alongside gains from the UK merger with Three.
Vodafone is expected to release its full-year financial results next week, which will provide further insight into the impact of its ongoing transformation efforts.
