American Verizon Communications agreed on Monday to pay $130 billion to buy out British Vodafone for its American wireless communication company, thus signing the third most valuable agreement that ends their often discordant 14-year marriage.
Vodafone will sell a 45 percent stake in Verizon Wireless for $58.9 billion in cash, $60.2 billion in Verizon shares, and an additional $11 billion from smaller transactions. The deal is expected to be ready for signing in the first quarter of next year.
Both companies have attempted to buy each other at different times.
Vodafone’s exit from the joint venture closes an expansionist chapter for the company, one of the most recognized British firms, which has grown significantly over the past 20 years through a series of very aggressive deals, expanding into more than 30 countries in Europe, Africa, and India.
“Over the past 13 years, Verizon Wireless has been the main driver of our business strategy, and through our partnership with Vodafone, we have made Verizon Wireless the leading wireless service provider in the U.S.,” said Verizon’s CEO Lowell McAdams.
If the regulatory side and shareholders approve the agreement, it will not mean much for consumers, but it confirms the continuation of the trend of consolidation and acquisitions in the U.S. wireless communications market.
The agreement will be the third largest in the world after Vodafone’s acquisition of German Mannesmann in 1999 for $203 billion and AOL’s purchase of Time Warner for $181 billion the following year.
