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May 7, 2020, 1:46 a.m. EDT

Liberty Global and Telefonica to combine their U.K. operations

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By Barbara Kollmeyer

Spain's Telefonica SA /zigman2/quotes/207034643/composite TEF -1.19% /zigman2/quotes/200416613/delayed ES:TEF -0.56% and U.S. tycoon John Malone's cable group Liberty Global /zigman2/quotes/205000522/composite LBTYA +0.55% on Thursday said they will merge their U.K. operations in a 50-50 joint venture. The deal values Spain's O2 at £12.7 billion ($15.6 billion) and Liberty Global's Virgin Media at £18.7 billion ($23 billion), and is expected to deliver synergies of £6.2 billion ($7.6 billion). Both parties will receive net cash proceeds at the close of the deal -- expected in mid 2021 -- after a series of recapitalizations -- £5.7 billion for Telefonica and £1.4 billion for Liberty Global (after an equalization payment to Telefonica of £2.5 billon). The deal, which ends days of speculation, is expected to reshape the U.K telecom industry, creating a competitor to the country's top operator, BT Group, /zigman2/quotes/209006687/delayed UK:BT.A -0.24% .

/zigman2/quotes/207034643/composite
US : U.S.: NYSE
$ 4.16
-0.05 -1.19%
Volume: 1.99M
Dec. 3, 2021 4:10p
P/E Ratio
1.95
Dividend Yield
6.61%
Market Cap
$22.99 billion
Rev. per Employee
$435,344
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/zigman2/quotes/200416613/delayed
ES : Spain: Madrid
3.67
-0.02 -0.56%
Volume: 55.84M
Dec. 3, 2021 5:38p
P/E Ratio
2.07
Dividend Yield
6.58%
Market Cap
€20.38 billion
Rev. per Employee
€381,890
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/zigman2/quotes/205000522/composite
US : U.S.: Nasdaq
$ 27.26
+0.15 +0.55%
Volume: 1.22M
Dec. 3, 2021 4:00p
P/E Ratio
1.32
Dividend Yield
N/A
Market Cap
$14.86 billion
Rev. per Employee
$520,874
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/zigman2/quotes/209006687/delayed
UK : U.K.: London
168.60 p
-0.40 -0.24%
Volume: 22.34M
Dec. 3, 2021 4:35p
P/E Ratio
16.34
Dividend Yield
4.57%
Market Cap
£16.71 billion
Rev. per Employee
£214,624
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