The potential deal was first reported by Sky News, with discussions said to be at a “relatively advanced” stage and no certainty that a deal will be reached.
Vodafone has noted press speculation and confirmed the “envisaged transaction” would involve both businesses. Under the deal being discussed, Vodafone would own 51 per cent and CK Hutchison would own 49 per cent.
A Vodafone spokesperson explained, “By combining our businesses, Vodafone UK and Three UK will gain the necessary scale to be able to accelerate the rollout of full 5G in the UK and expand broadband connectivity to rural communities and small businesses.
“The merged business would challenge the two already consolidated players for all UK customers and bring benefits through competitively priced access to a third reliable, high quality, and secure 5G network throughout the UK.”
Any deal would need to be approved by the Competition and Markets Authority (CMA).