Telecoms giant Vodafone has agreed to sell its 45 percent stake in US mobile operator Verizon Wireless to Verizon Communications for $130bn, bringing an end to one of the longest running corporate standoffs.
Monday’s deal marks the third-largest announced acquisition in corporate history and Vodafone’s exit from the large but mature US mobile market.
Under the agreement announced which will leave Verizon with 100 percent stake of the largest mobile operator in the US, Vodafone will receive $58.9bn in cash, $60.2bn in Verizon stock and an additional $11bn from smaller transactions.
“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.
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.