Verizon and Vodafone agree $165b Wireless deal
LONDON/SAN DIEGO (REUTERS) - Verizon Communications agreed on Monday to pay US$130 billion (S$165.6 billion) to buy Vodafone out of its US wireless business, signing history's third largest corporate deal to bring an end to an often fractious 14-year marriage.
The deal in cash and stock will give Verizon full access to the profits from the United States' largest mobile operator, handing it fresh firepower to invest in superfast mobile networks and fend off challengers in a market expected to become more competitive.
For the British group, the accord will allow it to return 71 per cent of the net proceeds - or US$84 billion including all of the stock - to shareholders while also ramping up investment in its networks to set itself apart from rivals.
The deal, in which Verizon will buy Vodafone's 45 per cent stake in Verizon Wireless, is the defining event in the careers of Vittorio Colao and Lowell McAdam, the chief executives of Vodafone and Verizon. They had succeeded in rebuilding relations between the two sides, long strained by clashes about the Wireless dividend and who would eventually seize full ownership.