Vodafone sells Verizon stake for $130bn

Deal marks the third-largest announced acquisition in corporate history and Vodafone's exit from US mobile market.

    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.

    SOURCE: Al Jazeera and agencies


    YOU MIGHT ALSO LIKE

    Cricket World Cup 2019 Quiz: How many runs can you score?

    Cricket World Cup 2019 Quiz: How many runs can you score?

    Pick your team and answer as many correct questions in three minutes.

    Visualising every Saudi coalition air raid on Yemen

    Visualising every Saudi coalition air raid on Yemen

    Since March 2015, Saudi Arabia and a coalition of Arab states have launched more than 19,278 air raids across Yemen.

    Why did Bush go to war in Iraq?

    Why did Bush go to war in Iraq?

    No, it wasn't because of WMDs, democracy or Iraqi oil. The real reason is much more sinister than that.