Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
Settings
Settings
Dynamic quotes 
OFFON

MarketScreener Homepage  >  Equities  >  London Stock Exchange  >  Vodafone Group Plc    VOD   GB00BH4HKS39

VODAFONE GROUP PLC

(VOD)
  Report  
SummaryQuotesChartsNewsRatingsCalendarCompanyFinancialsConsensusRevisions 
News SummaryMost relevantAll newsOfficial PublicationsSector newsAnalyst Recommendations

Vodafone's Liberty Global Deal Gets EU Nod -- Update

share with twitter share with LinkedIn share with facebook
share via e-mail
0
07/18/2019 | 08:05am EDT

(Adds responses from Vodafone and Liberty Global, background)

--The European Union's antitrust body has cleared Vodafone's acquisition of Liberty Global assets in Europe with conditions

--Vodafone offered remedies, including a wholesale agreement with Telefonica Deutschland, to ease regulators' concerns

--The deal is now expected to close on July 31

By Adria Calatayud

The European Union's antitrust authority has cleared Vodafone Group PLC acquisition of some assets from Liberty Global, paving the way for a multibillion-euro deal that is set to reshape the European telecoms market.

The European Commission said Thursday that remedies offered by Vodafone, including a wholesale agreement with Telefonica Deutschland AG (O2D.XE), addressed its competition concerns.

After the regulatory approval, Vodafone's acquisition of Liberty's assets in Germany, Hungary, Romania and the Czech Republic is now expected to be completed by July 31, both companies said in separate statements.

The deal strengthens Vodafone's presence in Germany--its largest market--and creates a continental giant offering cable, internet, wireless and landline-phone services. Meanwhile, John Malone's Liberty will receive a cash windfall at a moment when telecom operators are investing in the roll-out of next-generation 5G networks.

"With the European Commission's approval of this transaction, Vodafone transforms into Europe's largest fully-converged communications operator, accelerating innovation through our gigabit networks and bringing greater benefits to millions of customers," Vodafone Chief Executive Nick Read said.

Liberty welcomed the regulator's decision and said the deal leaves the company with a significant cash balance. Liberty will continue to operate in the U.K., Ireland, Belgium, Switzerland, Poland and Slovakia, it said.

In addition to the pact with Telefonica Deutschland--which gives Telefonica access to the merged entity's cable network in Germany--Vodafone committed to refrain from contractually restricting broadcasters carried on the merged entity's TV platform from also distributing their content via an over-the-top service.

Vodafone also proposed not increasing the feed-in fees paid by free-to-air broadcasters for transmission via Vodafone's cable network in Germany and to continue to carry their signal, the commission said.

EU regulators in December said they had opened an in-depth investigation into the deal, as the European Commission was concerned the acquisition may reduce competition in Germany and the Czech Republic.

Vodafone agreed to buy the Liberty Global operations in May last year. Liberty said the deal has a total enterprise value of 19 billion euros ($22.5 billion at the time) based on U.S. accounting rules, while Vodafone valued it at EUR18.4 billion using international standards.

The acquisition put pressure on Vodafone's balance sheet, leading the company to cut its full-year dividend by 40%, streamline its portfolio through deals such as the $2.2 billion sale of its New Zealand arm and pursue network-sharing agreements with rival operators like Telefonica O2 in the U.K.

Vodafone shares rose on news of the EU approval and at 1147 GMT traded 0.9% higher at 127.20 pence, having fallen nearly 44% since the deal was agreed.

Write to Adria Calatayud at adria.calatayudvaello@dowjones.com

Stocks mentioned in the article
ChangeLast1st jan.
LIBERTY GLOBAL PLC 0.04% 26.04 Delayed Quote.22.02%
TELEFONICA 1.03% 6.006 End-of-day quote.-18.16%
TELEFONICA DEUTSCHLAND HOLDING 3.67% 2.202 Delayed Quote.-35.58%
VODAFONE GROUP PLC 1.75% 150.84 Delayed Quote.-1.35%
share with twitter share with LinkedIn share with facebook
share via e-mail
0
Latest news on VODAFONE GROUP PLC
08/16Freenet threatens to derail $6.4 billion Sunrise-UPC deal
RE
08/16Vodacom to invest more than $589 mln on South Africa network this year
RE
08/15VODAFONE : Vodacom to invest more than $589 million on South Africa network this..
RE
08/14VODAFONE : Ericsson and Vodafone go live with 5G in Ireland
AQ
08/13Reliance shares see biggest intraday rise in decade; rivals hit by disruption..
RE
08/12VODAFONE : Nokia wins 5G network deal with Vodafone New Zealand
AQ
08/12Indian e-commerce platform Meesho raises $125 mln in Naspers-led funding
RE
08/08VODAFONE : Current Reports
PU
08/08Angry Birds maker Rovio's profit hit by Hatch expansion
RE
08/07EU charges Czech mobile operators with blocking rivals
RE
More news
Financials (EUR)
Sales 2020 44 814 M
EBIT 2020 4 584 M
Net income 2020 2 509 M
Debt 2020 31 982 M
Yield 2020 5,48%
P/E ratio 2020 16,9x
P/E ratio 2021 16,7x
EV / Sales2020 1,70x
EV / Sales2021 1,69x
Capitalization 44 212 M
Chart VODAFONE GROUP PLC
Duration : Period :
Vodafone Group Plc Technical Analysis Chart | MarketScreener
Full-screen chart
Technical analysis trends VODAFONE GROUP PLC
Short TermMid-TermLong Term
TrendsBullishBullishNeutral
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus OUTPERFORM
Number of Analysts 24
Average target price 2,00  €
Last Close Price 1,65  €
Spread / Highest target 63,9%
Spread / Average Target 21,3%
Spread / Lowest Target -28,8%
EPS Revisions
Managers
NameTitle
Nicholas Jonathan Read Group Chief Executive Officer & Executive Director
Gerard Johannes Kleisterlee Chairman
Margherita Della Valle Group Chief Financial Officer & Director
Johan Wibergh Group Technology Officer
Samuel Esson Jonah Independent Non-Executive Director
Sector and Competitors
1st jan.Capitalization (M$)
VODAFONE GROUP PLC-1.35%48 071
AT&T20.32%250 922
CHINA MOBILE LTD.-11.28%172 601
SOFTBANK GROUP CORP-30.09%96 574
NTT DOCOMO INC8.15%80 945
T-MOBILE US22.23%66 024