- EVs seek to regain sales momentum at Paris Motor Show
- NASA probe Europa Clipper lifts off for Jupiter's icy moon
- 'Unsustainable' housing crisis bedevils Spain's socialist govt
- Stocks shrug off China disappointment but oil slides
- Stocks diverge, oil retreats as China disappoints markets
- Trio wins economics Nobel for work on wealth inequality
- Ex-Stasi officer jailed over 1974 Berlin border killing
- Shanghai stocks gain after stimulus briefing as markets rally
- Shanghai stocks gain after stimulus briefing as Asian markets rally
- Nearly 90, but opera legend Kabaivanska is still calling tune
- With inflation down, ECB eyes faster tempo of rate cuts
- Is life possible on a Jupiter moon? NASA goes to investigate
- Ex-Stasi officer faces verdict over 1974 Berlin border killing
- Role of government, poverty research tipped for economics Nobel
- In milestone, SpaceX 'catches' megarocket booster after test flight
- In a first, SpaceX 'catches' megarocket booster after test flight
- Bangladeshi Hindus shrug off attack worries to celebrate festival
- Ubisoft fears assassin's hit over falling sales
- Vietnam, China hold talks on calming South China Sea tensions
- SpaceX will try to 'catch' giant Starship rocket shortly before landing
- Japan's former empress Michiko discharged after surgery: reports
- Japan's former empress Michiko discharged after surgey: reports
- 'Little Gregory' murder haunts France 40 years on
- Tariffs, tax cuts, energy: What is in Trump's economic plan?
- Amazon wants to be everything to everyone
- Jewish school in Canada hit by gunfire for second time
- With medical report Harris seeks to play health card against Trump
- China-EU EV tariff talks in Brussels end with 'major differences': Beijing
- Buried Nazi past haunts Athens on liberation anniversary
- Harris to release medical report confirming fitness for presidency: campaign
- Nobel prize a timely reminder, Hiroshima locals say
- China offers $325 bn in fiscal stimulus for ailing economy
- Small Quebec company dominates one part of NHL hockey: jerseys
- Boeing to cut 10% of workforce as it sees big Q3 loss
- Want to film in Paris? No sexism allowed
- US, European markets rise as investors weigh rates, earnings
- In Colombia, children trade plastic waste for school supplies
- JPMorgan Chase profits top estimates, bank sees 'resilient' US economy
- Little progress at key meet ahead of COP29 climate summit
- 'Party atmosphere': Skygazers treated to another aurora show
- Kyrgyzstan opens rare probe into glacier destruction
- European Mediterranean states discuss Middle East, migration
- Thunberg leads pro-Palestinian, climate protest in Milan
- Stock markets diverge before China weekend briefing
- EU questions shopping app Temu over illegal products risk
- Han Kang's books sell out in South Korea after Nobel win
- Shanghai markets sink ahead of briefing on mixed day for Asia
- Investors, analysts eye bigger China stimulus at Saturday briefing
- Musk unveils robotaxi, pledges it 'before 2027'
- At least 11 dead in Florida but Hurricane Milton not as bad as feared
Vodafone, Three announce plan for biggest UK mobile group
Mobile phone giant Vodafone has agreed to merge British operations with Three UK, owned by Hong Kong-based CK Hutchison, to create Britain's biggest operator with 27 million customers and accelerate rollout of faster 5G connectivity, the pair said Wednesday.
Expansion of 5G across the UK has been hampered by Britain's ban on Chinese giant Huawei, a major supplier of equipment for mobile telephone networks.
Vodafone and CK Hutchison said in a joint statement they were targeting a value of £16.5 billion ($21 billion) for the new group, above a current valuation of £15 billion.
"The (target) figure is... what we feel would represent success a few years after the merger" is completed, said a Vodafone spokesman.
The companies hope to complete a deal by the end of next year but face regulatory hurdles.
Vodafone chief executive Margherita Della Valle, who recently cut 11,000 jobs at the group, said the long-awaited merger "is great for customers, great for the country and great for competition.
"It's transformative as it will create a best-in-class -- indeed best in Europe -- 5G network, offering customers a superior experience," she added.
The tie-up, explored by Della Valle's predecessor Nick Read, will lead to network investment of £11 billion over ten years, the statement said.
Canning Fok, group co-managing director of CK Hutchison, said the merger "will have the scale needed to deliver a best-in-class 5G network for the UK, transforming mobile services" for customers.
"This will unlock significant value for CK Hutchison and its shareholders, realise material synergies, reduce net financial indebtedness and further strengthen its financial profile," he added.
The transaction will see Vodafone take 51 percent of the combined group and CK Hutchison the rest.
- Competition concerns -
"The deal is obviously subject to approvals from shareholders and regulators and Vodafone's statement gives a clear indication that it is the latter they are more concerned about," noted Dan Ridsdale, analyst at Edison Group.
The merger, if approved, will vault the new group above the country's two largest mobile operators BT EE and Virgin Media O2 in terms of customer numbers.
"The release reads like an overt pitch to convince a broader set of interest groups... leading with the benefits for customers, country and competition, before looking at deal synergies," added Ridsdale.
The statement said the merger "will deliver up to £5 billion per year in economic benefit by 2030, create jobs and support digital transformation of the UK's businesses.
"Every school and hospital in the UK will have access to standalone 5G by 2030," it added.
In 2020, London banned Chinese telecoms giant Huawei from involvement in the roll-out of Britain's superfast 5G broadband network, after US concerns about spying.
"Countries like China and Russia are willing to manipulate and exploit or steal our intellectual property, use technology for authoritarian ends, or withdraw crucial resources like energy," British Prime Minister Rishi Sunak last week told a news conference following a White House summit with US President Joe Biden.
Vodafone boss Della Valle meanwhile last month announced plans to axe 11,000 jobs over three years, mirroring culls across the tech sector as soaring inflation weighed on the global economy.
The cuts at Vodafone were equal to more than 10 percent of its global workforce.
Her predecessor Read stepped down in early December after a four-year tenure marked by a steep fall in the company's share price.
"Vodafone shares have edged higher from yesterday's 25-year lows after it was confirmed that it would merge its UK business with Three's UK business to create the UK’s number one mobile telecoms provider," said Michael Hewson, chief market analyst at CMC Markets UK.
burs-bcp/rl
Ch.Lefebvre--CPN