Vodafone is considering making an offer for T-Mobile UK in a move that would create the UK’s largest mobile phone firm, according to a report in the Financial Times.
T-Mobile is owned by German firm Deutsche Telekom and reports suggest it is keen to get out of the crowded UK mobile phone market, which is one of the most competitive in Europe. T-Mobile currently enjoys a 15% share of the UK market, with Vodafone on 25%.
The FT reported that Deutsche Telekom has installed JP Morgan to advise it on its options. Any potential deal is likely to face heavy scrutiny from regulators in the UK, the paper said.
Vodafone is the world’s largest mobile phone firm by revenue. Its latest financial results revealed Group revenue of $41bn, up 15.6%. Operating profit jumped 16.7% to £11.8bn before impairment charges, but those charges totalled £5.9bn, primarily in respect to operations in Spain, the Group said.
The firm also outlined a £1bn cost reduction scheme.
Both companies have so far declined to comment on the story.
