Vodafone has agreed to take ownership of the VodafoneThree joint venture for £4.3bn via a cancellation of shares.

Following completion of the transaction, the telecommunications company will become the sole owner of VodafoneThree, which is the UK’s largest mobile operator.

Since last year’s merger of Vodafone UK and Three UK, the group said “significant progress” has been made in integrating the two business, leading to improvements in network quality, which have been delivered ahead of schedule.

Vodafone said the integration means it is now more confident on delivering its plans to create “one of Europe’s leading telecoms networks”, and now expects to realise £700m annual cost and capital expenditure synergies by the 2030 financial year.

Chief executive at Vodafone, Margherita Della Valle, stated: "A year on from the merger, the team has made remarkable progress, as we maximise the full potential of VodafoneThree and capture the significant synergies.

"I'm delighted that we will now have full ownership of VodafoneThree as we roll out one of Europe's most advanced 5G networks, provide the UK's best customer experience and drive long-term value for our shareholders."

Head of markets at AJ Bell, Dan Coatsworth, said the transaction "signals a new lease of life for a business that was bloated with debt" and struggled with low growth.

He concluded: "That led to Vodafone selling or exiting various operations to simplify the group structure and regain focus.

"There are now tentative signs of improvement both operationally and financially, putting it in a better position to mount a comeback.

"VodafoneThree has decent scale in the UK and is enjoying good broadband growth, and Vodafone clearly sees an opportunity to accelerate growth efforts by having full control. The UK mobile and broadband market is highly competitive, and Vodafone needs to be agile to stay one step ahead."

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