Three snaps up telecom rival UK Broadband in £300m deal
Mobile operator Three UK is buying telecoms rival UK Broadband in a £300m deal, nearly a year after its parent company was blocked from buying O2.
The company behind wireless broadband operator Relish will become a fully owned subsidiary of Three UK, which is set to pay £250m in cash as part of the deal.
It will make a further £50m available as credit towards a mobile virtual network operator agreement on Three's network.
Reports emerged last autumn suggesting UK Broadband was holding talks for a national agreement with some of the UK's mobile operators in hopes of expanding its network.
Three UK chief executive Dave Dyson said: "UK Broadband gives us an opportunity to expand our ambition to provide high-quality and great value internet connectivity for UK consumers."
It comes months after the European Commission formally blocked Three's parent company, CK Hutchison Holdings, from a £10.3bn takeover of O2. Hutchinson is run by Hong Kong billionaire, Li Ka-shing.