Washington, Sept. 3: The US-based phone company Verizon Communications has agreed to buy UK-based Vodafone Group PLC for 130 billion dollars, making it the third largest corporate deal ever.
The two firms agreed upon the payment part in cash and part in Verizon stock worth 58.9 billion dollars and 60.2 billion dollars respectively along with an additional 11 billion dollars from smaller transactions in a deal that is due to close in the first quarter of next year.
According to Fox News, the historic deal is the third largest announced deal in the world after Vodafone’s 203 billion dollar takeover of Germany’s Mannesmann in 1999 and AOL’s 181 billion dollar acquisition of Time Warner the following year.
Vodafone chief executive Vittorio Colao said that this has been a highly productive partnership in a business with excellent momentum adding that he was ‘super committed’ to the next chapter of the company.
Meanwhile, Verzion chief executive Lowell McAdam said that the time was right to buy Vodafone adding that the company looks forward to having full ownership of the industry leader in network performance, profitability and cash flow. (ANI)