VodafoneThree started as a merger of the Vodafone and Three companies, with Vodafone owning 51% and CK Hutchison Holdings (Three’s parent company) holding on to 49% ownership, but one year on from that initial merger and Vodafone is now set to buy Three out and take full control.
This will cost Vodafone £4.3 billion, but will also give it full control of Smarty, which was previously a Three sub-brand.
It’s worth noting that this buyout does still need to receive regulatory approval, so there’s a chance it will be blocked, but that’s probably unlikely.
Margherita Della Valle, Chief Executive of Vodafone Group, said: “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.”
So what does all this mean for customers? Well, in theory nothing much will be changing. Vodafone has said it plans to maintain the existing Vodafone and Three brands, and the company still intends to stick to its previous commitments for VodafoneThree, such as bringing 5G Standalone to 99.95% of the UK population by 2034.
So at least in the short term this should be more of a behind the scenes change than a customer-facing one, though we’d imagine over the longer term the Three brand itself might become less emphasised.
For now though, if you're a Three customer you aren't going to be switched over to Vodafone.
