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.