The £16.5bn merger between Vodafone and Three has successfully completed with the pair combining to create the UK’s largest telecoms network.

Under the combined business, named VodafoneThree, 51% is owned by Vodafone and 49% by CK Hutchison Group Telecom (CKHGT), a wholly owned subsidiary of CK Hutchison.

Vodafone confirmed that it would fully consolidate VodafoneThree in its financial results, and that the CEO of the new group is Max Taylor, who currently leads Vodafone UK. Three UK’s Darren Purkis has been appointed chief financial officer (CFO).

VodafoneThree plans to invest £11bn over the next 10 years to create one of Europe’s most advanced 5G networks, with £1.3bn to be invested in the first year, allowing the company to accelerate its network deployment.

The combined business is also expecting to deliver cost and capex synergies of £700m per annum by the fifth year after completion, with the transaction to be accretive to Vodafone’s adjusted free cash flow from FY29 onwards.

“The merger will create a new force in UK mobile, transform the country’s digital infrastructure and propel the UK to the forefront of European connectivity,” said Vodafone’s group chief executive, Margherita Della Valle.

“We are now eager to kick-off our network build and rapidly bring customers greater coverage and superior network quality. The transaction completes the reshaping of Vodafone in Europe, and following this period of transition we are now well-positioned for growth ahead.”

Deputy chairman of CK Hutchison and executive chairman of CKHGT, Canning Fok, added: “As we have demonstrated in other European markets, scale enables the significant investment needed to deliver the world-beating mobile networks our customers expect, and the Vodafone and Three merger provides that scale.

“In addition, this transaction unlocks significant shareholder value, returning approximately £1.3bn in net cash to the group.”

---