Verizon acquires 45% of Vodafone for $130 bn

Top US telecom operator Verizon on Monday agreed to buy 45% of Vodafone for $130 billion, which is said to be the third largest M&A deal in the global telecom industry. Both the companies have signed an agreement in this regard.

As per the agreement Vodafone will get $58.9 billion in cash, $60.2 billion in Verizon stock and an additional $11 billion from smaller transactions. The acquisition is expected to be completed in the first quarter of next year.

On closure of this transaction, the deal will have a tax liability of $5 billion in the US.

The Verizon-Vodafone deal becomes the third largest deal in the telecommunications industry after Vodafone’s $203 billion takeover of Germany’s Mannesmann in 1999 and AOL’s $181 billion acquisition of Time Warner the following year.

Lead advisers for Verizon were Guggenheim Partners, Morgan Stanley, and Paul Taubman, a former banker at Morgan Stanley. Barclays and Bank of America Merrill Lynch acted as financial advisors to Verizon.

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