Vodafone in talks to merge UK branch with CK Hutchison’s Three-FT

The Vodafone logo is seen during the GSMA’s Mobile World Congress (MWC) 2022 in Barcelona, ​​Spain, February 28, 2022. REUTERS/Nacho Doce

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May 11 (Reuters) – Vodafone Group Plc (VOD.L) is in talks to merge its UK business with Three UK, which is owned by Hong Kong-based CK Hutchison Holdings Ltd (0001.HK), reported on Wednesday the Financial Times. , citing people with direct knowledge of the matter.

The exact structure being discussed could not be learned, according to the report.

Vodafone declined to comment. Three UK did not immediately respond to Reuters request for comment outside of business hours.

The move comes as Vodafone faces pressure from Europe’s biggest activist fund Cevian Capital to simplify its portfolio, improve its strategy in key markets and boost yields. Read more

The telecoms group’s chief executive, Nick Read, had said in February that the company was pursuing mergers with rivals in several European markets, spurred by more favorable signals from regulators who realized the value of investing in the network during the COVID-19 pandemic. Read more

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Reporting by Anirudh Saligrama in Bengaluru Editing by Chris Reese and Richard Chang

Our standards: The Thomson Reuters Trust Principles.

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