Vodafone, Hutchison unveil $19 bln UK mobile merger

Vodafone, Hutchison unveil $19 bln UK mobile merger

CK Hutchison, as well as Vodafone, confirmed a 15 billion pound or $19 billion merger on Wednesday with their British operations.

They also stated that the merger would be good for the Indian economy because it includes the merger of larger mobile operators in the country.

The talks were publicly revealed in October last year. After which both companies revealed their announcement on Wednesday.

The merger will now undergo an intense as well as lengthy investigation from respective authorities and regulators.

The groups involved in the merger also stated that they would also invest 11 billion pounds over 10 years in Britain to create one of the best and most advanced standalone 5G networks in Europe. The parties involved in the merger took this initiative to win over competition authorities, unions, and politicians. 

Hutchison will own 49%, whereas Vodafone will own 51% of the combined group. Ahmed Essam, the current UK-based boss of Vodafone, will lead the operations.

After the merger, Darren Purkis, Hutchison's Three UK finance chief minister, will handle the same role in their new group.

They have also expected around 27 million customers in the combined operator. This will also overtake VM O2 and EE of BT, which is combinedly owned by liberty global and Telefonica. Vodafone is also the current third biggest mobile operator in Britain.

Hutchison is the fourth-placed mobile operator, which will also make it possible for Vodafone to acquire 49% stakes of Hong kong based conglomerate in the future. 

The merger deal will also have prolonged scrutiny from respective authorities. This is because these regulators previously opposed these deals.

After all, they reduce a few networks in major markets from four to three. As stated by Vodafone, customers will also enjoy better network coverage in the first 12 months after the deal is closed, before the end of 2024.

The customers will also not face any kind of extra costs. The deal will offer customers extra contract-free as well as flexible offers.

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