Vodafone sells Verizon stake for US$130bnSeptember 3 - 1pm
Vodafone has reached agreement to dispose of its US group whose principal asset is its 45% interest in Verizon Wireless, the company’s joint venture partner, for a total consideration of US$130 billion.
Ending a 14-year relationship in the process, the deal is the third largest corporate announcement in history according to Reuters.
After buying Vodafone’s 45% stake in Verizon Wireless, the company’s chairman and CEO Lowell McAdam said:
“These transactions mark the culmination of a sustained and highly productive relationship between Verizon and Vodafone, and provides a very strong foundation for both companies to achieve their respective long-term strategic goals.”
Vodafone Group Chairman Gerard Kleisterlee claims Verizon’s offer now provides the company with an attractive price.
“The transaction will position Vodafone strongly to pursue our leadership strategy in mobile and unified communication services for consumers and enterprises both in our developed markets and across our emerging markets businesses.
“It will also enable us to provide substantial returns to individual shareholders and to the investment funds relied upon by savers and pensioners.”