Vodafone Group PLC (LSE:VOD) completed the merger of its UK arm and Three UK over the weekend, creating a new business called VodafoneThree of which it owns a majority 51% stake.
The FTSE 100 telecoms group said it plans to invest £11 billion over the next 10 years, including £1.3 billion in capital expenditure in the first year, to accelerate the roll-out of the unit's 5G network.
Combining the two businesses is expected to result in annual 'synergies' of £700 million by the fifth year, while Vodafone predicted that the transaction will boost its adjusted free cash flow from the 2029 financial year.
Group chief executive Margherita Della Valle said: "The transaction completes the reshaping of Vodafone in Europe, and following this period of transition, we are now well-positioned for growth ahead."
Canning Fok, deputy chairman of CK Hutchison, which owns the other 49% of the combined business, said: "As we have demonstrated in other European markets, scale enables the significant investment needed to deliver the world-beating mobile networks our customers expect, and the Vodafone and Three merger provides that scale."