Authorization

Vodafone snaps up cable operators in €18bn deal

By John-Paul Ford Rojas, Business Reporter
Vodafone has agreed to buy Liberty Global's operations in four European countries in a deal worth €18.4bn (?16.1bn).
The deal sees the UK-based telecoms giant take control of cable operators in Germany, the Czech Republic, Hungary and Romania.
Shares had risen by just over 0.5% by market close.Vodafone said the "transformative" purchase, which adds to existing operations in Germany and Spain, would make it the leading "next generation network" in Europe with 54 million cable and fibre homes on its network.Including partnerships and wholesale arrangements, the deal will give Vodafone a reach of 110 million homes and businesses, it said.The widely-anticipated deal shifts the balance of mobile operator Vodafone's revenues and earnings further towards fixed line and TV services and also means that Europe will in future represent more than three quarters of earnings.
Vodafone said the purchase in Germany of the Unitymedia business would create a national challenger to the dominant fixed line operator Deutsche Telekom, making it large enough to help the German government achieve its ambitions to extend high-speed broadband connections to millions more households.Chief executive Vittorio Colao said: "This transaction will create the first truly converged pan-European champion of competition."It represents a step change in Europe's transition to a gigabit society and a transformative combination for Vodafone that will generate significant value for shareholders.
More from Business

'National embarrassment': Potholes costing motorists ?1 million a month


BT to cut 13,000 jobs and ditch central London HQ


Bank of England keeps interest rate on hold as economy slows


RBS agrees ?3.6bn settlement with US over mortgage probe


750 Gaucho jobs at risk as steak chain slices Cau brand


Next raises profit target after mini-heatwave

"We are committed to accelerating and deepening investment in next generation mobile and fixed networks, building on Vodafone's track record of ensuring that customers benefit from the choice of a strong and sustainable challenger to dominant incumbent operators."Vodafone expects the deal, which still faces regulatory approval, to complete around mid-2019.
See also:
Leave a comment
News
  • Latest
  • Read
  • Commented
Calendar Content
«    Август 2018    »
ПнВтСрЧтПтСбВс
 12345
6789101112
13141516171819
20212223242526
2728293031