Vodafone to sell off stake in Verizon for $130bn

Trade

2 September 2013

Vodafone is close to completing the sale its stake in Verizon’s mobile business back to the US telco for $130 billion (£64.4 billion) in cash and common shares.

If completed, the deal would be the third biggest of all time behind AOL’s merger with Time Warner in 2001 (worth $181.6 billion) and Vodafone’s purchase of German telco Mannesmann (for $202.8 billion) in 2000.

Vodafone owns 45% of Verizon Wireless, the US’ largest mobile phone company with almost 100 million customers. The sale represents a significant downsizing of Vodafone’s overseas business and it is expected the telco will focus more on consolidating its European business, investing in infrastructure and looking at smaller acquisitions.

Vodafone and Verizon have had an acrimonious relationship over the past 10 years, with both sides considering takeovers. Vodafone refused offers to cash out of Verizon Wireless to offset losses in the European market.