Hundreds of jobs at risk if Three UK-Vodafone merger gets green light
- Deal between the two rivals would create the UK’s largest mobile company
- The group is estimated to be worth £15 billion
- Three finance directors Darren Purkis confirmed that some employees will lose their jobs
Hundreds of British jobs are at risk if a mega merger between Three UK and Vodafone is given the green light.
A deal between the two rivals would create the UK’s largest mobile company, worth an estimated £15 billion.
But Darren Purkis, Three UK’s finance chief, who will become finance director of the combined group, confirmed that some employees will lose their jobs.
The group also expects to create new roles as the merged business pledges to invest £11 billion in the UK over the next decade.
That’s part of a drive to create “one of Europe’s most advanced standalone 5G networks”. Purkis told the Mail: “It’s too early to say what jobs will go and what jobs will stay, but there will clearly be synergies – there will be rationalisation.
Mega merger: Deal between the two rivals would create the UK’s largest mobile company worth an estimated £15bn
“But jobs will be created by the transaction. The expansion of a nationwide 5G network will create thousands of jobs.
‘There will be new jobs created. There will be a rationalization of jobs.’
He added: ‘We don’t know where yet, it’s too early to say in the process. The job rationalisation will go through the British company.’
Unite The Union has warned that 1,600 jobs could be cut if the mega-merger is given the green light by regulators. The deal – which would reduce the number of operators in the UK from four to three – is being investigated by the competition watchdog.
The Competition and Markets Authority has previously said it is concerned a merger could push up prices for consumers. It will make a final decision by December 7.
If the company gets the green light, the combined mobile operator will serve around 28 million customers, surpassing EE and Virgin Media O2.
The merger has already been approved under the National Security and Investment Act.
Ministers were investigating the deal because Three UK is owned by China’s CK Hutchison and Vodafone has sensitive government contracts.
DIY INVESTMENT PLATFORMS
AJ-Bel
AJ-Bel
Easy investing and ready-made portfolios
Hargreaves Lansdown
Hargreaves Lansdown
Free Fund Trading and Investment Ideas
interactive investor
interactive investor
Fixed investment costs from £4.99 per month
Saxo
Saxo
Get £200 back on trading fees
Trading 212
Trading 212
Free trading and no account fees
Affiliate links: If you purchase a product, This is Money may earn a commission. These deals are chosen by our editorial team because we think they are worth highlighting. This does not affect our editorial independence.