Liberty Global and Telefonica Welcome Final UK Regulatory Approval for Virgin Media-O2 Joint Venture
May 20 2021 - 2:06AM
Business Wire
Transaction Expected to Close by June 1, 2021
The UK’s Competition & Markets Authority (CMA) today
announced its final approval of the 50:50 joint venture between
Liberty Global and Telefonica to combine Virgin Media and O2. The
CMA cleared the transaction without remedies and now all regulatory
conditions are met in alignment with the original terms and the
transaction is now expected to close by June 1, 2021.
Liberty Global and Telefonica announced the joint venture last
May, bringing together Virgin Media, the UK’s fastest broadband
network, and O2, the country’s largest and most admired mobile
operator. The combination will create a stronger fixed and mobile
competitor in the UK market, supporting the expansion of Virgin
Media’s giga-ready network and O2’s 5G mobile deployment for the
benefit of consumers, businesses and the public sector. The joint
venture is expected to deliver substantial synergies valued at £6.2
billion on a net present value basis after integration costs and
will create a nationwide integrated communications provider with
£11 billion of revenue.
Liberty Global and Telefonica announced last month the
appointment of Lutz Schüler as Chief Executive Officer and Patricia
Cobian as Chief Financial Officer of the combined company upon
completion of the transaction. Schüler is currently Chief Executive
Officer of Virgin Media and Cobian is Chief Financial Officer at
O2.
Mike Fries, CEO of Liberty Global, and José Maria
Alvarez-Pallete, CEO of Telefonica, commented: “This is a watershed
moment in the history of telecommunications in the UK as we are now
cleared to bring real choice where it hasn’t existed before, while
investing in fibre and 5G that the UK needs to thrive. We thank the
CMA for conducting a thorough and efficient review. Lutz and
Patricia are now set to take the reins and launch a national
connectivity champion that will connect more people, ignite more
businesses back to growth and power more communities for the
greater good.”
To find out more and to follow our progress, visit
www.nationalconnectivitychampion.co.uk
About Liberty Global
Liberty Global (NASDAQ: LBTYA, LBTYB and LBTYK) is one of the
world’s leading converged video, broadband and communications
companies, with operations in seven European countries under the
consumer brands Virgin Media, Telenet, UPC, the combined Sunrise
UPC, as well as VodafoneZiggo, which is owned through a 50/50 joint
venture. Our substantial scale and commitment to innovation enable
us to invest in the infrastructure and digital platforms that
empower our customers to make the most of the digital
revolution.
Liberty Global delivers market-leading products through
next-generation networks that connect customers subscribing to 49
million broadband, video, fixed and mobile telephony services
across our brands. We also have significant investments in ITV,
All3Media, ITI Neovision, LionsGate, the Formula E racing series
and several regional sports networks. For more information, please
visit www.libertyglobal.com
About Telefonica
Telefónica is one the largest telecommunications service
providers in the world. The company offers fixed and mobile
connectivity as well as a wide range of digital services for
residential and business customers. With 344 million customers,
Telefónica operates in Europe and Latin America. Telefónica is a
100% listed company and its shares are traded on the Spanish Stock
Market and on those in New York and Lima.
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Telefonica Investor
Relations Telephone +34 91 482 87 00 Isabel Beltrán
(i.beltran@telefonica.com) Torsten Achtmann
(Torsten.Achtmann@telefonica.com)
Media Relations Telephone +34 66
907 73 83 Alex Kowalski (alejandro.kowalski@telefonica.com)
Liberty Global Investor
Relations Max Adkins +44 78 1795 9705 Stefan Halters +44 20
8483 6211
Corporate Communications Molly
Bruce +1 303 220 4202 Matt Beake +44 20 8483 6428
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