Verizon to acquire Vodafone US stake for $130 billion

Verizon has today announced that it has entered into a ‘definitive agreement’ with Vodafone to acquire Vodafone’s US group.

The principal asset of 45% of Verizon Wireless for $130 billion consists primarily of cash and stock. Verizon expects the transaction at close to be immediately accretive to the company’s earnings per share by approximately 10%, without any one-time adjustments.

The transaction was unanimously approved by the boards of directors of Verizon and Vodafone, and is subject to customary closing conditions, including regulatory approvals and the approval of both companies’ shareholders.

The transaction – expected to close in the first quarter of 2014 – will provide Verizon with 100% ownership of the industry-leading wireless carrier in the United States.

“This transaction will enhance value across platforms and allow Verizon to operate more efficiently, so we can continue to focus on producing more seamless and integrated products and solutions for our customers,” said Lowell McAdam, Verizon chairman and CEO.

“We believe full ownership will provide increased opportunities in the enterprise and consumer wireline markets.”

McAdam concluded that the announcement is a ‘major milestone’ for Verizon.

Vittorio Colao, Vodafone Group CEO, said: “This transaction allows both Vodafone and Verizon to execute on their long-term strategic objectives. Our two companies have had a long and successful partnership and have grown Verizon Wireless into a market leader with great momentum.”