Vodafone has agreed to acquire Liberty Global’s cable networks operations in Germany(Unitymedia), the Czech Republic, Hungary and Romania for €18.4 billion.
If approved by regulators, the deal will accelerate Vodafone’s converged communications strategy through in-market consolidation in Vodafone’s largest market, Germany, and in Vodafone’s Central and Eastern European (CEE) markets, the Czech Republic, Hungary and Romania.
Vodafone said it will become the leading next generation network (NGN) owner in Europe, with 54 million cable/fibre homes ‘on-net’ and a total NGN reach of 110 million homes and businesses, including wholesale arrangements.
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.
The deal is expected to transform Vodafone’s fixed line and convergence strategy in key CEE markets, complementing Vodafone’s existing mobile operations in the Czech Republic, Hungary and Romania. In these markets, the combined businesses will reach over 6.4 million homes (39% of total households) and will serve 15.8 million mobile, 1.8 million broadband and 2.1 million TV customers, said Vodafone.
Vittorio Colao, CEO, Vodafone Group
This transaction will create the first truly convergedpan-European champion of competition. It represents a step change in Europe’s transition to a Gigabit Society and a transformative combination for Vodafone that will generate significant value for shareholders.