Vodafone has finally confirmed that it has exited the US market with the sale of its 45% stake in Verizon. This will bring to an end the rocky 14 year relationship between the two giants.
This deal marks the third-largest announced acquisition in corporate history after Vodafone’s $203 billion takeover of Germany’s Mannesmann in 1999 and AOL’s $181 billion acquisition of Time Warner the following year.
Under this agreement, Vodafone will receive $58.9bn in cash, $60.2bn in Verizon stock and an additional $11bn from smaller transactions in a deal that is due to close in the first quarter of next year.
“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 think we have a balanced approach here,” Vodafone Chief Executive Vittorio Colao told reporters, adding that he was “super committed” to the next chapter of the company. “We are reducing our debt level which will enable the company to be very robust and take opportunities if they arise.”
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.
