NEW YORK (AFP) – U.S. telecoms giant Verizon said Monday it had reached a deal with Vodafone to acquire its 45 percent stake in Verizon Wireless for $130 billion.
Verizon said in a statement that the blockbuster deal — which will allow Vodafone to bounce back from hefty losses — consists primarily of cash and stock.
The transaction is expected to close in the first quarter of 2014 and “would provide Verizon with 100 percent ownership of the industry-leading wireless carrier in the United States,” the statement said.
“This transaction will enhance value across platforms and allow Verizon to operate more efficiently, so we can continue to focus on producing more seamless and integrated products and solutions for our customers,” said Lowell McAdam, Verizon chairman and chief executive.
“We believe full ownership will provide increased opportunities in the enterprise and consumer wireline markets.”
Verizon said it will pay Vodafone $58.9 billion in cash and issue common stock currently valued at approximately $60.2 billion to be distributed to Vodafone shareholders, with other items accounting for the balance.
The deal could change the face of the global telecom sector, with analysts saying it would allow Vodafone to pay down debt, make new acquisitions and return money to shareholders.
Copyright 2013 The National Memo