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Liberty Global and Vodafone agree Dutch deal

Liberty’s loss-making Ziggo broadband operation will combine with Vodafone’s mobile network in Holland, to create one company.

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Vodafone and Liberty Global are teaming up in Holland

John Malone’s Liberty Global (NASDAQ:LBTYA) has agreed a tie-up with Vodafone (NASDAQ:VOD; LON:VOD) to merge their Dutch businesses.

Liberty’s loss making Ziggo broadband operation will combine with Vodafone’s mobile network in Holland, to create one company.

The enlarged firm is expected to supply 15mln “revenue generating units” including set-top boxes, internet access, and landline and mobile connections.

Speculation was rife that Vodafone, the world’s second-largest mobile operator, and Liberty Global, which owns Virgin Media, were in talks for a merger, but it seems talks were limited to their Dutch operations.

Vodafone will pay €1bn ($1.12bn) to Liberty as part of the deal that will value the joint venture at about €3.5bn ($3.91bn) in terms of combined revenue and capital expenditure, after integration costs.

Mike Fries, chief executive of Liberty, said: “By combining our best-in-class broadband and video network in the Netherlands with Vodafone's market-leading 4G wireless platform, we are creating a new national champion for Dutch consumers.”

It was announced as Liberty reported a 5% rise in operating profit to $2.3bn in the year to December 31 from the previous 12 months.

Quick facts: Liberty Global

Price: 22.51 USD

NASDAQ:LBTYA
Market: NASDAQ
Market Cap: $13.65 billion
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