The combination of Vodafone UK and Three UK will create a new entity, with Vodafone retaining a majority 51% share.
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Vodafone Group plc (LON:VOD) has agreed terms with Three UK owner, Hutchinson Group, to merge their UK telecoms businesses. The combination of Vodafone UK and Three UK will create a new entity, with Vodafone retaining a majority 51% share.
This is a non-cash deal, expected to generate more than £700m of annual cost savings by the fifth full-year post-completion. In the first five years, integration costs are expected in the region of £500m.
The shares were up 2.6% shortly after the announcement.
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