Vodafone UK thinking to buy T-Mobile UK

In a move that would forge the largest mobile phone operator in Britain, Vodafone’s UK branch is looking at potentially buying the United Kingdom wing of T-Mobile, as the Times Online is reporting. This move comes after T-Mobile UK was placed out on the market for purchase by its parent company, Deutsche Telekom.

In terms of mobile phone operators, T-Mobile UK is relatively small; the value of it is “between £2.5 billion and £3.4 billion” and it currently holds a market share of 15 percent. This is 10 percent less of that which Vodafone UK holds, so the merger would create a company that commands an admirable 40 percent of British mobile phones. There are two ways that this could progress; the first of which is a joint venture, which regulators would have to approve or they could choose to proceed with a total acquisition of the firm. Analysts say that a consolidation is likely with Vodafone, as they have previously stated they are constantly vigilant of opportunities of this sort, and Vodafone Australia has recently merged with Hutchison Whampoa.

Unfortunately, both T-Mobile UK and Vodafone UK declined to comment, but it’s rumored that the latter is still only considering the options, and nothing is set in stone. Regardless, this could affect UK customers in the near future, so we’ll be sure to report any new information that crops up.


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