Vodafone and CK Hutchison have officially announced their merger, revealing plans to combine their British operations and create the largest mobile operator in the country. After months of anticipation since their initial disclosure of talks in October, the two groups have now provided the details of their agreement.
Subject to regulatory approval, this merger would result in a combined customer base of 27 million mobile users, surpassing BT-owned EE and overtaking O2 in terms of market share. However, the Competition and Markets Authority is likely to raise concerns about potential diminished competition resulting from the proposed merger.
Vodafone has stated its expectation that the deal will be finalised by the end of 2024. The announcement comes at a time when the London stock market is experiencing a significant decline, with Vodafone’s shares hitting their lowest level in 25 years. Since last summer, the company’s shares have plummeted by 40% due to intensified competition within the market.
Despite this challenging backdrop, Vodafone’s shares (LSE: VOD) have seen a modest spike of 0.54% following the news of the merger. This positive market response indicates some optimism among investors regarding the potential benefits and opportunities presented by the merger between Vodafone and CK Hutchison.
