By Anthony O. Goriainoff and Joe Hoppe
Vodafone Group said Wednesday that it has agreed to merge its U.K. operations with CK Hutchison Holdings’ Three as first flagged late last year, valuing the new business at a net present value of more than 7 billion pounds ($8.83 billion).
The London-listed telecommunications group said the merger will create the U.K.’s largest mobile operator with 27 million customers, the separate companies having previously trailed BT Group’s previously market-leading EE, and O2, owned by Telefonica and Liberty Global.
The merger–which has been in discussion since October–is expected to result in substantial efficiencies, amounting to more than GBP700 million of annual cost and capex synergies within five years of the deal closing, Vodafone said.
Vodafone will own 51% of the combined business with Hong Kong-listed CK Hutchinson owning…
