Vodafone announced the resignation of its finance chief as the company prepares to complete the merger of its UK operations with Three.

Luka Mucic is expected to leave his position by the end of the year to take on the role of chief executive at Vonovia SE, Germany’s largest real estate firm.

Appointed as Vodafone’s finance chief in September 2023, Mucic took over from Margherita Della Valle, who made history as the first female CEO of the FTSE 100 telecom giant. His departure arrives sooner than anticipated within the company.

Alongside Della Valle, the 53-year-old executive has played a significant role in transforming Vodafone, which includes divesting its Spanish and Italian operations for €12 billion and coordinating the £18 billion integration with Three, previously owned by CK Hutchinson.

Both Vodafone and Three have committed to investing £11 billion in the development of their 5G network, an endeavor Della Valle claims is feasible due to the enhanced scale created by this merger.

This merger marks a significant moment in the European telecom sector, as it will consolidate two of the smallest operators into a leading market force in the UK. Notably, this approval represents a departure from the usual regulatory stipulations requiring “structural remedies,” like the establishment of competing subsidiary brands to maintain competitive pricing. The agreement is anticipated to be finalized in the coming weeks.

This development raises expectations within the telecom industry that regulators may be more open to mergers among major mobile operators, which industry leaders argue is crucial for achieving the investment returns necessary for infrastructure enhancement.

Historically, regulators have hesitated to approve mergers between the largest companies, concerned about potential price increases and lower quality of service affecting consumers.

Various candidates, including some from outside the company, are reportedly in consideration to succeed Mucic.

Della Valle expressed her appreciation for Mucic’s contributions, stating, “During his time with us, he has played a key part in resetting our capital allocation priorities and enhancing our focus on operational excellence. I wish him the very best for the next phase of his career as a CEO back in his homeland.”

Vodafone is scheduled to release its interim results on 20 May.

On Wednesday, the company’s shares fell by 1.5p, or 1.9%, closing at 71.5p.