According to sources quoted by the British Sky News, European telecommunications company Vodafone and Three UK, a subsidiary of the Li Ka-shing family, are negotiating to merge their respective UK businesses, and are expected to reach a deal before the end of this year. Once the

The two major UK telecommunications companies will merge

Vodafone and Three UK are fit to merge

Changhe, a subsidiary of the Li family, said in a press release:

British authorities regard "5G" as a driving force for promoting economic and social changes, and need to cultivate and ensure a healthy competitive environment in the market, otherwise the opportunity to lead 5G; through the merger of the group with Vodafone UK telecommunications business, the new company will have the required scale, which can accelerate the pace of 5G network promotion and expand broadband connections to rural communities and small business enterprises. The merger also strongly challenged two long-established operators in the UK, benefiting consumers, allowing them to choose a third reliable, high-quality and secure 5G network covering the UK at a suitable price.

Elizabeth II and Mr. Li Ka-shing are long-time friends

However, it is still unknown whether the two companies can finally reach an agreement on the terms or structure of the potential transaction. Therefore, no transaction can be determined at present and a notice will be issued in a timely manner.

According to the UK Sky News, after a period of stagnation between Three UK and Vodafone, has accelerated its progress in recent weeks, and the discussion has entered a relatively in-depth stage.

Vodafone is currently the third largest telecommunications provider in the UK

Currently, there are 4 large telecommunications providers in the UK, namely Virgin Media O2, EE, Vodafone and Three UK of the Li family.

According to professional analysts' estimates, the new company after the merger of Vodafone and Three UK will control 46% of the UK's mobile communication spectrum, with a business value of at least 12 billion to 15 billion pounds, and has about 27 million customers, surpassing the 24 million competitor Virgin Media O2 and about 20 million EE's customers, and will become the UK's largest e-commerce company.

Three UK is currently the fourth largest telecommunications provider in the UK

, if you join forces, you will benefit both, and if you fight, you will suffer.

Faced with the scale advantages that O2 and EE have established, Vodafone and Three UK, which are ranked third and fourth. If they continue to fight alone, the situation will probably be increasingly unfavorable to them, and they will even be eliminated by the market in the end.

The Li Ka-shing family merged its British business with Vodafone for this time. They joined forces not only to avoid the risk of being eliminated, but also to create the UK's largest telecommunications company, surpassing O2 and EE. In the future, their voice and influence in the UK telecom market will be significantly improved.