- Telecoms group Vodafone Group Plc (NASDAQ:VOD) is in talks to combine its U.K. operations with Three UK, the mobile operator owned by Hong Kong infrastructure conglomerate CK Hutchison Holdings LTD (OTC:CKHUY), the Financial Times reports.
- The deal could help consolidate the British mobile market as Vodafone faces pressure from Europe’s most prominent activist investor, Cevian Capital, to simplify its business and improve returns.
- Although Vodafone’s share price has gained by 3% since 2022, it has lost 44% of its value over the past five years.
- The bringing together of the third and fourth-largest mobile network operators in Britain could invite regulatory scrutiny.
- Meanwhile, Three reported flat quarter-on-quarter revenues of £582 million despite increasing net new customers since mid-2020.
- Analysts had previously speculated that Vodafone could seek to buy Three, but it would need to meet CK Hutchison’s hefty price expectations.
- Price Action: VOD shares traded higher by 1.24% at $14.75 in the premarket on the last check Thursday.
- Photo via wikimedia Commons
