Vodafone Strike a $22.7 Billion Deal With Liberty Global

The world’s wireless phone giant, Vodafone, struck a $21.4 billion (€18.4 billion) deal with Liberty Global plc to buy its big chunk of cable broadband in Germany, Hungary, Romania and Czech Republic. The deal was struck on Wednesday may 9th 2018.

The transaction, which includes Vodafone’s debt to the company, will see the British wireless phone giant take over all the Liberty Global plc operations in Germany, Hungary, Romania and Czech Republic.

Liberty Global plc is the most widely spread international cable company in the European Union with 22 million households’ subscribers to their voice video and internet broadband.

Vodafone CEO, Vittorio Colao, said the acquisition will make the company British’s leading network owner, serving the largest number of mobile customers and households across the European Union.

The move will face opposition from Deutsche Telekom in Germany in cable TV mobile phone rival. However, Tim Hoettges, Deutsche Telekom CEO, said that he will fight the deal using regulators. The CEO also said that he did not think the Vodafone-Liberty deal will get approval from regulators.

Earlier that Wednesday, Liberty Global plc had reported an income of $782.8 million from its 13 million subscribers in Germany from its first quarter revenue. In addition, this depicts an 8.7 percent increase from the previous year. Liberty Global plc will continue to be the largest cable operator even after selling a part of it. Vodafone has systems in United Kingdom, Belgium, Ireland, Slovakia and Poland.

In England, the Liberty Global company is the largest and operates as Virginia Media. Having 5.5 million customers for cable TV and 4.5 customers for phone in England, the company reported making a revenue of $1.8 billion during the first quarter. Furthermore, on that Wednesday Vodafone shares increased by 1.4%, while that of Deutsche Telekom dropped by 1.5%.