EU: gives green light for Vodafone-Liberty Global venture

European Commission regulators approved plans by Liberty Global PLC and Vodafone Group PLC to set up a Dutch telecoms joint venture under the condition that Vodafone sheds its consumer fixed-line business in the Netherlands.

Vodafone said in February that it would pay Liberty Global $1.12 billion to combine Liberty Global’s Dutch cable and internet businesses with Vodafone’s local mobile business. The deal would value the 50-50 joint venture’s synergies at roughly €3.5 billion in terms of combined revenue and capital expenditure, after integration costs.

In a joint statement, the companies said they welcomed the EU’s conditional clearance, adding that they’ve “already received a number of expressions of interest [for Vodafone’s fixed business and that] the parties will now proceed with the sale process.”

The EC said it initially had concerns the deal would reduce competition in the Dutch markets for fixed line multiple play services and fixed-mobile multiple play services, but that the divestment offered fully addresses the potential problem.

Full Content: The Wall Street Journal

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