Liberty Global to Acquire Cable & Wireless

DENVER: In a $5.3-billion deal, Liberty Global is acquiring Cable & Wireless Communications (CWC) to create "the leading consumer and B2B communications provider in Latin America and the Caribbean."

Liberty Global will combine its Liberty Latin America and Caribbean Group (LiLAC) with CWC.

“The acquisition of Cable & Wireless represents a watershed moment for our recently created LiLAC platform," said Mike Fries, the CEO of Liberty Global. "It will add significant scale and management depth to our fast-growing operations in Latin America and the Caribbean, while creating a new regional consumer and B2B powerhouse. Upon completion, the combined business will serve 10 million video, data, voice and mobile subscribers, with leading positions across multiple markets.”

He continued, “With our long track record of strong operational and financial performance in the region, we are confident that this combination will yield substantial synergies and accelerate our current prospects for the LiLAC Group to low double-digit rebased OCF growth over the medium term. Our high-quality networks and commitment to product innovation will provide the foundation for growth and value creation for both Liberty Global and LiLAC shareholders. Upon closing, the combined LiLAC and CWC businesses will benefit from the broader group's scale and management expertise.”

Liberty Global says the deal will deliver growth opportunities in broadband, pay TV and mobile data in the region, and create a regional platform to capitalize on additional M&A opportunities. "Liberty Global believes that the combined businesses of LiLAC and CWC will be well-positioned to exploit the fragmented telecom and pay-television landscape."