The British businesses of Liberty Global Plc and Telefonica SA will merge to create a major new player in UK mobile and broadband communications in a deal valued at around 31 billion pounds ($38 billion) including debt.
) will merge to create a major new player in UK mobile and broadband communications in a deal valued at around 31 billion pounds including debt.
The parent companies, which expect to achieve 6.2 billion pounds of synergies on an annual basis by the fifth full year after closing, will have equal ownership of the combined entity, they said on Thursday.The companies said the deal would value Telefonica’s O2 at 12.7 billion pounds and Liberty’s Virgin Media at 18.7 billion pounds, both on a total enterprise value basis, including debt.
Both parties expect to receive net cash proceeds at closing following a series of recapitalisations that will generate 5.7 billion pounds in proceeds for Telefonica and 1.4 billion pounds for Liberty, they said. The deal will allow Telefonica to squeeze cash from O2 and keep a presence in Britain, while Virgin will gain access to its own wireless network, saving the money it has spent until now on leasing capacity for its mobile operations.
Reporting by Juby Babu in Bengaluru and Isla Binnie in Madrid; Editing by Subhranshu Sahu and Mark Potter
Canada Latest News, Canada Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Liberty Global and Telefonica to combine their U.K. operationsSpain's Telefonica SA undefinedundefined and U.S. tycoon John Malone's cable group Liberty Global undefined on Thursday said they will merge their U.K....
Read more »
Liberty Global, Telefónica agree 24 billion pound deal to merge UK groups: FTThe British units of Liberty Global Plc and Telefónica SA will merge in a deal worth 24 billion pounds ($29.57 billion), the Financial Times reported https://www.ft.com/content/2b73a385-7218-47dc-83bf-18e6e3d5f8f4 on Thursday.
Read more »
Global Stocks Mixed as Investors Weigh Economic ReopeningWorld markets were mixed as investors gauged the possible effects of easing lockdowns to combat the new coronavirus.
Read more »
Zero-emission tractors, cattle that belch less gas can help curb global warming: McKinseyUsing zero-emission farm machinery, breeding cattle that produce less methane and employing other new technologies could significantly cut greenhouse gas emissions from farms, a report by consultancy McKinsey said on Wednesday.
Read more »
POLITICO Global Translations Virtual InterviewWe're interviewing ex-British PM Tony Blair tomorrow about the partnerships needed to minimize the global impact of coronavirus, how to handle deepening inequalities and what a new and more resilient normal should look like after the pandemic. Watch live:
Read more »
Coronavirus live updates: Global cases top 3.6 million, Trump says more deaths inevitableDeath toll in the United States is over 71,000 and more than 1.2 million Americans have now been infected.
Read more »