Liberty Global and Vodafone Group announced that they have completed the transaction to combine Vodafone’s wireless communications assets in the Netherlands with Liberty Global's video, broadband and business services in the country under the Ziggo brand.
The companies have secured approval from EU back in August 2016 for the plan, clearing the way for the companies to create the Netherlands’ second-largest mobile and cable operator.
The 50:50 joint venture (JV) called VodafoneZiggo, first announced in February 2016, is valued at €3.5bn and will operate under both the Vodafone and Ziggo brands, creating a nationwide integrated communications provider with 7.1 million homes passed by the fibre-rich broadband network.
VodafoneZiggo has nearly 15 million Revenue Generating Unit (RGUs), of which 4.0 million are video, 3.1 million are high-speed broadband, 2.5 million are fixed-line telephony and 5.2 million are mobile.
Mike Fries, CEO of Liberty Global
VodafoneZiggo will be the most innovative provider of converged communications services in the Netherlands with a full suite of market-leading TV, broadband, fixed-line and mobile products on day one of the JV. We are also excited for our shareholders. This is a highly accretive transaction with significant synergies and a predictable dividend stream.
Vittorio Colao, Vodafone Group Chief Executive
The merged operation will be a stronger competitor in the Netherlands - one of our core European markets - and is a further example of Vodafone’s ability to create value for its customers and shareholders through an effective market-by-market convergence strategy.
