Monday, September 2, 2013

​Verizon to buy Vodafone’s 45% in JV for $130bn


​Verizon to buy Vodafone’s 45% in JV for $130bn


Verizon Communications said on Monday it has agreed to buy out Vodafone Group's 45% stake in Verizon Wireless for $130 billion, capping its decade long effort to win full control of the most profitable mobile service provider in the United States.

The deal marks the third largest announced acquisition in corporate history, after Vodafone's 1999 buyout of Germany's Mannesmann for $203 billion and AOL's $165 billion takeover of Time Warner in 2000. It also marks British telecom giant Vodafone's exit from the large but mature US mobile market.

Under the terms of the deal, Vodafone would get $58.9 billion in cash, $60.2 billion in Verizon stock, and an additional $11 billion from smaller transactions that would take the total deal value to $130 billion, Verizon said in a statement. The boards of Verizon and Vodafone have unanimously approved the sale, which is subject to customary closing conditions, and was expected to close in the first quarter of 2014. 

MD. ABDUL WAHAB
PGDM 3rd


 

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