Briefing Note on Proposed Merger Between Vodafone and Three

Impact on Security of UK Critical National Infrastructure from Proposed Merger Between Vodafone and Three

Briefing note prepared by the China Strategic Risks Institute; commissioned by Unite the Union. 

Top lines: 

• The proposed merger of Vodafone and Hong Kong conglomerate CK Hutchison’s Three group would add to a growing list of major stakes held by PRC firms in the UK’s Critical National Infrastructure – with interests across energy, water, telecommunications and transportation. 

• The PRC’s ownership of much of the UK’s Critical National Infrastructure presents a host of dependency and espionage concerns. This weakens the UK’s economic security and reduces its strategic autonomy in the event of an escalating geopolitical crisis. 

• The vast amount of data collected by next generation telecommunications providers presents a unique set of risks, with the potential to aid hostile state actions in new and dangerous ways. 

• CK Hutchison’s close links to the Chinese Communist Party are cause for particular concern, with the PRC government practising a deliberate strategy of co-opting businesses and financial elites to achieve its broader geopolitical goals.