Vodafone will pay Liberty €1 billion for equal ownership in the 50-50 joint venture. Earlier this month, the two operators confirmed that they were in talks for a potential merger after discussions were scrapped last year.
“Together we will be a stronger competitor in the Netherlands, benefiting customers of both companies and the market as a whole. This transaction marks a continuation of Vodafone’s market‐by‐market convergence strategy and we look forward to partnering with Liberty Global to create a fully integrated provider in one of our core European markets,” said Vittorio Colao, group chief executive of Vodafone Group.
The combination of Liberty’s Ziggo broadband network with Vodafone’s mobile operations in the Netherlands will create a company with over 15 million revenue generating units – of which 4.2 million are video, 3.2 million are high-speed broadband, 2.6 million are fixed-line telephony and 5.3 million, mobile.
In addition, both parties estimate total cost, capex and revenue synergies of an estimated net present value of approximately €3.5 billion after integration costs.
Mike Fries, CEO of Liberty Global, said: “Throughout Europe, Liberty is capitalising on the rising demand for lightning‐fast broadband speeds, the coolest digital TV platforms and apps, and seamless 4G wireless connectivity. Soon, both Ziggo and Vodafone customers in the Netherlands will be at the forefront of this new world, and we couldn't be more excited about our partnership with Vodafone.”
The deal, subject to regulatory approvals, is expected to be completed by the end of 2016.
