Vodafone and Three unveil £16.5billion merger — creating UK’s biggest mobile phone operator

VODAFONE and Three yesterday unveiled a £16.5billion merger — creating the country’s biggest mobile phone operator.

The deal follows more than a year of talks.

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It had sparked fears of higher charges — but the giants vowed not to change the pricing strategy for their combined 27 million customers.

Bosses admitted there would be some staff overlap.

But Vodafone said the move would create up to 12,000 jobs in Britain, just months after announcing it would be cutting 11,000 roles globally to “simplify” the business.

The tie-up will cut the number of UK mobile phone operators from four to three — a move blocked by competition regulators in 2016 when Three tried to merge with O2.

Vodafone boss Margherita Della Valle said without the new deal both Vodafone and Three would be unable to invest, or keep up with fibre and cable owners BT-EE and Virgin Media O2.

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She added the market had changed dramatically over seven years, largely due to the explosion of cheaper mobile virtual network operators, such as GiffGaff and Lebara.

She said the merger paves the way for further investment in the 5G network, which would help boost the country’s productivity and economy.

And she hailed it as “great for customers, great for the country and great for competition”.

MPs including Sir Iain Duncan Smith and unions have expressed concerns about a further strengthening of Three, which is owned by China’s Hutchison and controlled by Hong Kong billionaire Li Ka-Shing.

Gail Cartmail, executive head of operations for Unite predicted: “This deal will give a company with deep ties to the Chinese state an even more prominent place at the heart of the UK’s telecommunications infrastructure.

“And on top of that it will hike people’s bills and mean job losses for Vodafone and Three workers.”

She went on: “The Government must step in and stop this reckless merger — and Unite is building a cross-party coalition to demand they do so.”

Vodafone runs contracts for the government but Ahmed Essam, Vodafone UK chief executive, said details were kept private.

Three UK chief executive Robert Finnegan said the firm has been able to operate in the UK fully owned by China, while this deal will mean the enlarged company is 49 per cent controlled by Hutchison.

£11M treasure trove

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GAMES WORKSHOP might make miniature models, but its 2,400 staff are in line for a huge £11million bonus.

The payday works out at around £4,580 for each of its shop workers, model makers and designers and is an increase on last year’s £10million.

Games Workshop said sales had risen from £370million to at least £440million — and it expected profits to be not less than £170million.

The table-top war games business is now worth £3.4billion after shares rose by almost six per cent yesterday to £10.21.

Games Workshop is working with Superman actor Henry Cavill on making a film and TV series based on its Warhammer 40,000 fantasy franchise.

Bey tour drives up inflation

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SINGER Beyoncé could be to blame for prices Jumpin’ Jumpin’ after her world tour was linked to rising inflation.

The superstar kicked off her Renaissance world tour in May and demand from fans has sent local hotel prices soaring.

In Sweden, higher prices at restaurants and hotels, and extra spending on recreation and culture during her shows, led to official inflation figures falling slower than expected.

Michael Grahn, chief analyst at Danske Bank, said: “Beyoncé is responsible for the extra upside surprise this month.

“It’s quite astonishing for a single event.”

The US performer has since played in London, Cardiff and Edinburgh. Hotel room prices in the cities have rocketed, with even a Travelodge rising from the usual £69.99 to £199 during Beyoncé’s show dates.

And budget-friendly hotel chain IBIS was charging £9,508 for a double room in Cardiff on the night of her tour.

Weed firm blooming

A MEDICAL cannabis clinic is to hire 200 extra staff after a fivefold lift in patient numbers.

Set up in 2021, Mamedica is one of just four clinics in the UK licensed to prescribe and dispense medical cannabis.

It delivers cannabis flowers, oil and vape cartridges to eligible patients over the age of 18 for around £250 a month.

Medical cannabis has been legal in the UK since 2018, for treating multiple sclerosis, nausea caused by cancer treatment and severe epilepsy.

Odey probe quiz

THE chair of the Treasury Select Committee has written to the FCA demanding answers about its ongoing two-year probe into Crispin Odey.

Harriett Baldwin said the “deeply troubling” claims against the hedge fund titan were “potentially damaging to the reputation of the entire financial sector”.

Mr Odey has been ousted from his fund following allegations of sexual assault or harassment by 13 women.

The FCA’s handling of claims about his conduct has been facing rising scrutiny.

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SHARES in Ladbrokes owner Entain fell 8.74 per cent yesterday to £12.05 after it tapped investors for £600million to fund a Polish acquisition. Entain is buying Poland’s STS sports betting business in a deal worth £750million.

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Soda City snub

THE City has been dealt a huge blow after the world’s biggest natural soda ash firm scrapped its £6.5billion listing.

Turkish group We Soda, which produces the material used in glass and detergents, said it was cancelling its IPO because of “extreme investor caution in London”.

Boss Alasdair Warren said the company was “unable to arrive at a valuation that we believe reflects our financial and operating characteristics”.

It is a further setback for London amid a drought of new listings, as firms such as ARM opt to float in New York.

No Shell oil cuts

SHELL has dropped its target of reducing oil production by up to two per cent a year — as it makes boosting shareholder rewards its top priority.

The energy giant yesterday said it would stick to current levels until 2030, but added it was already producing less after selling a Texas oil field.

It plans to increase dividends with a share buyback of at least £3.9billion.

It will also keep investing four times as much in oil and gas production than in low-carbon products.