Liberty Global & Vodafone Plan Dutch Joint Venture

DENVER/LONDON: Liberty Global and Vodafone are combining their operations in the Netherlands to create a JV that spans video, broadband, mobile and B2B services.

The transaction is expected to close around the end of 2016 and is subject to regulatory approvals and consultations with the Works Councils. The venture combines Ziggo’s fiber-rich broadband network with Vodafone’s leading mobile operations. The JV is expected to result in cost and revenue synergies of about 3.5 billion euros ($3.9 billion) after integration costs.

Vodafone’s group chief executive, Vittorio Colao, said, “The combination of Vodafone’s leading mobile business with Ziggo’s successful broadband and TV business creates a strong and competitive integrated communications player, which will invest in digital infrastructure, entertainment services and productivity applications for Dutch consumer, business and public sector customers. Together we will be a stronger competitor in the Netherlands, benefiting customers of both companies and the market as a whole. This transaction marks a continuation of Vodafone’s market-by-market convergence strategy and we look forward to partnering with Liberty Global to create a fully integrated provider in one of our core European markets.”

Mike Fries, the CEO of Liberty Global, said, “This powerful combination of the best fixed and mobile networks in the Netherlands will deliver huge benefits to Dutch consumers and businesses. Throughout Europe, Liberty is capitalizing on the rising demand for lightning-fast broadband speeds, the coolest digital TV platforms and apps, and seamless 4G wireless connectivity. Soon, both Ziggo and Vodafone customers in the Netherlands will be at the forefront of this new world, and we couldn’t be more excited about our partnership with Vodafone. We look forward to working together to develop cutting-edge converged services for the Dutch market.”