According to three sources who spoke with Reuters, a merger announcement between Vodafone (VOD.L) and CK Hutchison (0001. HK) regarding their British operations is expected this Friday or early next week.
According to one source, the deal was reached after Vodafone’s announcement in October, with the British company acquiring 51% and Hutchison 49% through a change in debt ownership rather than a cash exchange.
The purchase price, including debt, is estimated by analysts to be 15 billion pounds ($18.6 billion). Hutchison said nothing. There was no response from Vodafone.
The combined company will have 27 million customers, making it the largest mobile operator in Britain, ahead of rivals such as BT’s (BT.L) EE, Telefonica’s (TEF.MC), and Liberty Global’s (LBTYA.O) VM O2.
The deal will be scrutinized by regulators who have previously blocked deals that would have reduced the number of networks serving critical markets from four to three.