UK-based Vodafone Group PLC has decided to sell its 45% stake in Verizon Wireless to US-based phone company Verizon Communications for 130 billion dollars. The deal is due to close in the first quarter of next year.
Vodafone will return 84bn dollars to its shareholders.
Vodafone is hoping to invest the money it gets from this deal into expanding its 4G services across Europe. And for the same reason it had bought German Cable Company Kabel Deutschland (in 2013) and Cable & Wireless Worldwide (in 2013). Vodafone has now gained access to CWW's fiber network.
Vodafone recently kicked off a "Project Spring" that will further company's network and service leadership in Europe.
The two firms agreed upon the cash payment of 58.9 billion dollars, 60.2 billion dollars' worth in Verizon stock, 5 billion dollars in Verizon loan notes along with an additional 6 billion dollars from smaller transactions.
This is the third largest corporate deal ever. Biggest deal ever struck was Vodafone's acquisition of Germany's Mannesmann in 1999 for 203 billion dollars and the second was AOL's acquisition of Time Warner in 2000 for 181 billion dollars.
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