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LONDON/MADRID (Reuters) - Britain’s competition regulator cleared a $44 billion merger between broadband company Virgin Media and Telefonica’s UK mobile network O2 on Thursday, after a months-long review.
FILE PHOTO: A man walks past an O2 phone store in Manchester, Britain March 7, 2016. REUTERS/Phil Noble
Virgin owner Liberty Global and Spain’s Telefonica, who agreed a year ago to forge a broadband and mobile powerhouse to challenge market leader BT, hailed the decision as “a watershed moment in the history of telecommunications in the UK”.
“We are reassured that competition amongst mobile communications providers will remain strong and it is therefore unlikely that the merger would lead to higher prices or lower quality services,” Martin Coleman of Britain’s Competition and Markets Authority (CMA) said.
Liberty Global s (LBTYA) JV With Telefonica Gets U.K. Approval Zacks.com 4 hrs ago
Liberty Global LBTYA and Telefonica’s 50:50 joint venture to combine Virgin Media and O2 received approval from the U.K.’s Competition & Markets Authority or CMA on May 20. The transaction is now expected to be completed by Jun 1, 2021.
Liberty Global and Telefonica announced the joint venture in May, 2020. The deal valued Virgin Media at £18.7 billion (including £11.3 billion of debt) and O2 at £12.7 billion.
The deal that combines Virgin Media and O2, the U.K.’s fastest broadband network and leading mobile operator, respectively, is expected to generate £11 billion in revenues and synergies worth £6.2 billion on a net present value basis after integration costs. Moreover, OCF and OFCF are expected to be $3.70 billion and $1.57 billion, respectively.
O2 and Virgin Media joint venture approved by UK regulator
May 20, 2021 12:32 EDT with 0 comments
O2 has announced that the UK’s Competition & Markets Authority has approved a 50:50 joint venture between Liberty Global, which owns Virgin Media, and O2. The mobile carrier said that the regulator agreed to the deal under the original terms and the transaction is now expected to close on June 1.
The joint venture will allow O2 and Liberty Global to deliver a nationwide integrated communications network that records £11 billion in revenue. O2 currently has one of the biggest mobile customer bases in the UK and is rolling out speedy 5G connectivity while Virgin Media is rolling out its Gig1 gigabit fibre to premises around the country.
Britain clears $44 bn Virgin-O2 mobile merger deal Published: 8:18 PM, May 20, 2021 SHARE
LONDON: Britain s competition regulator cleared a $44 billion merger between broadband company Virgin Media and Telefonica s UK mobile network O2 on Thursday, after a months-long review.
Virgin owner Liberty Global and Spain s Telefonica agreed the merger a year ago, creating a powerhouse in broadband and mobile to take on market leader BT. After looking closely at the deal, we are reassured that competition amongst mobile communications providers will remain strong and it is therefore unlikely that the merger would lead to higher prices or lower quality services, Martin Coleman of the Competition and Markets Authority (CMA) said.
Britain clears $44 billion Virgin-O2 merger to take on BT reuters.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from reuters.com Daily Mail and Mail on Sunday newspapers.