French billionaire Xavier Niel has become the largest shareholder of Vodafone Group after his Vega vehicle purchased a 16.21% stake for £4.4bn at 110 pence per share, a 15 % premium to Thursday’s close.

The transaction, which requires regulatory clearance, will be held by three financial institutions until approvals are granted, and Emirati operator e& will relinquish its board seat. Niel said Vodafone’s diversified footprint and cash‑flow potential fit his long‑term European telecom strategy.

Vodafone chief executive Margherita Della Valle has been reshaping the group, selling Spanish, Italian and Dutch assets and buying CK Hutchison’s 49 % stake in Vodafone Three for £4.3bn to take full control of the UK joint venture.

Niel’s entry adds a seasoned operator with a track record in France, Italy, Poland and Ireland, potentially accelerating consolidation and giving Vodafone a powerful anchor investor as it executes its streamlined portfolio.