Vodafone buys chunk of Liberty's European assets for 18.4 billion euros

British telecoms giant Vodafone on Wednesday unveiled an 18.4-billion-euro deal to buy part of Liberty Global's operations that will make it Europe's largest cable and broadband operator. The deal worth $21.9 billion will see Vodafone become the second biggest player in eurozone powerhouse Germany, while it will acquire operations also in the Czech Republic, Hungary and Romania from the US group.
Vodafone - already the world's second biggest mobile phone operator by subscribers after China Mobile - would become the leading next generation network owner in Europe with a reach of 110 million homes and businesses, it added in a statement.
Cost and capital expenditure synergies are expected to reach 535 million euros per year before integration costs, by the fifth year following completion.
"This transaction will create the first truly converged pan-European champion of competition," said Vodafone chief executive Vittorio Colao.
"We are committed to accelerating and deepening investment in next generation mobile and fixed networks, building on Vodafone's track record of ensuring that customers benefit from the choice of a strong and sustainable challenger to dominant incumbent operators."
The acquisition of Unitymedia in Germany would create a "national challenger", Vodafone said, throwing the gauntlet down to dominant player Deutsche Telekom.
"The combination of Vodafone and Unitymedia's non-overlapping regional operations will establish a strong second national provider of digital infrastructure in the German market," it added.