Vodafone and Three merge to become Britain's biggest mobile network
The two companies said they have closed the deal to create VodafoneThree, which is now the UK's largest mobile network operator with around 27m customers.
Bosses said VodafoneThree will invest £11bn over the next decade to create one of Europe's most advanced 5G networks. This includes a £1.3bn capital expenditure pledge in the first year.
Margherita Della Valle, chief executive of Vodafone Group, said: '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.
'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.'
It comes two years after Vodafone and Three owner CK Hutchison, which is owned by the Hong Kong billionaire Li Ka-Shing, first announced plans to merge their UK operations.
The deal has been held up by a lengthy regulatory process amid concerns reducing the number of UK mobile network operators from four to three would push up prices for consumers.
Unions and China-sceptic MPs also raised concerns about granting Hong Kong-based CK Hutchison access to critical national infrastructure and sensitive government contracts.
However, the deal passed a national security review and in December the Competition and Markets Authority gave the green light to the merger.
Vodafone and Three have made a number of legally-binding commitments, including the £11bn investment pledge and guarantees around some consumer tariffs.
More recently, the launch has been delayed by negotiations between Vodafone and CK Hutchison over the terms of the deal.
The newly-merged company will be 51pc owned by Vodafone, while Three will hold the remaining 49pc. Vodafone has an option to buy out Three's stake after three years.
It will be led by Max Taylor, current chief executive of Vodafone UK, while Three's Darren Purkis has been appointed chief financial officer.
Bosses said the combined company is expected to deliver cost savings of around £700m per year, unlocking more money for network investment.
VodafoneThree's net debt is expected to be £6bn and the parent companies have agreed to contribute £800m of equity to support working capital requirements.
Canning Fok, deputy chairman of CK Hutchison, said: '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.'
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