Verizon Acquires Vodafone Stake for $130B, Canadian Expansion Still Possible

Last week it was reported Verizon was set to buy out U.K. partner Vodafone’s 45% stake in Verizon Wireless for a reported $130 billion deal. It has now become official, as a press release this morning has confirmed it, after reports on the weekend said a deal was imminent:

Verizon Communications Inc. today announced that it has entered into a definitive agreement with Vodafone Group Plc to acquire Vodafone’s U.S. group with the principal asset of 45 percent of Verizon Wireless for $130 billion, consisting primarily of cash and stock. Verizon expects the transaction at close to be immediately accretive to the company’s EPS (earnings per share) by approximately 10 percent, 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 is expected to close in the first quarter of 2014.

Verizon will pay Vodafone $58.9 billion in cash (by financing), $60.2 billion in stock and the remaining $2.5 billion a combination of other sources.

Last week, reports of the Verizon-Vodafone deal was questioned by some as putting a damper on efforts to expand to Canada, but some analysts argued it could also improve odds as Verizon was now in complete control for future mergers and acquisitions. Some have speculated Canada was possibly used as a bargaining chip in negotiations with Vodafone.

The noise of Verizon coming to Canada has also gained some interest by popular Canadian YouTube channel A Dose of Buckley, which gives its expletive-filled NSFW take on the matter:

The deal probably gives Rogers, Telus and Bell some breathing room for now, but we’ll find out Verizon’s true intentions by September 17, the deadline for deposits to made to participate in the 700MHz wireless spectrum auction set for January 2014.

Founder and Editor-in-Chief of iPhoneinCanada.ca. Follow me on Twitter, and @iPhoneinCanada, and on Google+.

  • PRSHAN

    VERIZON is in full is in force now Vodafone want to expand in more in Europe Market countries

    Verizon other hand want the North American market there target is now CANADA putting bid with the Canadian dollar so low now it give more buying power for Verizon $3-4 Billion U.S dollar to Canadian set side expand to Canada getting the 2 blocks 700Mhz spectrum This new inning of this long game is just getting started

    WORLD BIGGEST MOBILE PLAYERS

    Vodafone Controls (Europe Market, Australia, India, South Africa Germany 2013 ) ROAMING IS FREE (all Vodafone subscribers)

    América Móvil Controls (Mexico and Whole Lanita South American Market) ROAMING IS FREE (all América Móvil subscribers)

    Verizon Wireless will be first time to Controls North American Market (USA, CANADA 2013) ROAMING FREE SOON

    WE KNOW IN THE WEEK BEFORE THE DEADLINE SEPT 17

    YES TO VERIZON 🙂

  • Mr. Mc

    Great video! The big bully/small bully analogy is spot on.