Liberty Global, Vodafone to Create 50:50 JV in the Netherlands

Liberty Global, Vodafone to Create 50:50 JV in the Netherlands Image Credit: Vodafone

Liberty Global and Vodafone Group have reached an agreement to merge their respective fiber broadband and mobile network businesses in the Netherlands to form a 50:50 joint venture(JV). Based on the enterprise value of each business, and after deducting Liberty Global's brand Ziggo’s €7.3 billion of net debt, Vodafone will make a cash payment to the former of €1 billion to equalize its ownership in the JV.

The JV will create a unified communications provider in the Netherlands with complementary strengths across video, broadband, mobile and B2B services. It will operate under both the Vodafone and Ziggo brands and will have over 15 million revenue generating units, of which 4.2 million are video, 3.2 million are high‐speed broadband, 2.6 million are fixed‐line telephony and 5.3 million are mobile.

According to a joint statement by both operaators, the total synergies include cost and capex synergies with run‐rate savings of €280 million on an annual basis by the fifth full year post closing, equivalent to a net present value of approximately €2.5 billion after integration costs. 

Vodafone Group Chief Executive, Vittorio Colao
The combination of Vodafone’s leading mobile business with Ziggo’s successful broadband and TV business creates a strong and competitive integrated communications player, which will invest in digital infrastructure, entertainment services and productivity applications for Dutch consumer, business and public sector customers.

Mike Fries, Chief Executive Officer of Liberty Global
Throughout Europe, Liberty is capitalizing on the rising demand for lightning‐fast broadband speeds, the coolest digital TV platforms and apps, and seamless 4G wireless connectivity. 

Ray is a news editor at The Fast Mode, bringing with him more than 10 years of experience in the wireless industry.

For tips and feedback, email Ray at ray.sharma(at)thefastmode.com, or reach him on LinkedIn @raysharma10, Facebook @1RaySharma

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