Vodafone, Liberty Dutch Deal Positive, Moody's Say
February 22 2016 - 9:07AM
Dow Jones News
LONDON--Vodafone Group PLC (VOD.LN) and Liberty Global PLC's (
LBTYA) joint venture in the Netherlands is credit positive for both
companies because it will boost their competitiveness by creating
the second-largest integrated player in the Dutch
telecommunications market, Moody's Investors Service said
Monday.
"The creation of a second integrated player will increase
competitive pressure on smaller mobile-centric players in the Dutch
market," said analyst Ivan Palacios in a statement.
Mr. Palacios also said savings arising from the deal are at the
higher end of the range when compared with other similar
fixed-to-mobile deals in Europe.
Last week, Vodafone, the world's second-largest mobile operator
by subscribers after China Mobile Ltd. (0941.HK), said it would pay
EUR1 billion ($1.1 billion) to Europe-focused Liberty Global as
part of the deal to combine their businesses in the
Netherlands.
Liberty said the 50-50 joint venture would be valued at roughly
€3.5 billion in terms of combined revenue and capital expenditure,
after integration costs.
At 1335 GMT, Vodafone shares rose 1.2% to 216 pence, valuing the
company at GBP56.6 billion ($79.8 billion).
--Write to Simon Zekaria at simon.zekaria@wsj.com
(END) Dow Jones Newswires
February 22, 2016 08:52 ET (13:52 GMT)
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