Vodafone Gains On Upcoming UK Merger With Hutchinson

(RTTNews) - British telecom major Vodafone Group Plc (VOD, VOD.L) and CK Hutchison Holdings Limited are in the final stage to merge their British operations, Reuters reported citing three sources. The announcement is expected as soon as Friday or early next week. The deal is expected to create Britain's biggest mobile operator.

Following the news, Vodafone shares were gaining around 2.6 percent in London to trade at 78.89 pence. In pre-market activity on Nasdaq, the shares were trading at $9.77, up 2 percent.

In the combined group, Vodafone will own 51%, while Hutchison will own the remaining 49%, as announced earlier. The combined company could be worth around 15 billion pounds or $18.6 billion, including debt.

Vodafone in last October had confirmed that it was in talks with CK Hutchison on a possible merger of Vodafone UK and Three UK. By merging their businesses, both parties expected to gain the necessary scale to boost the rollout of full 5G in the UK and expand broadband connectivity into rural areas.