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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 +1.37% /zigman2/quotes/200416613/delayed ES:TEF +0.36% and U.S. tycoon John Malone's cable group Liberty Global /zigman2/quotes/205000522/composite LBTYA +0.08% 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 -1.00% .

/zigman2/quotes/207034643/composite
US : U.S.: NYSE
$ 4.43
+0.06 +1.37%
Volume: 1.80M
July 23, 2021 4:00p
P/E Ratio
11.07
Dividend Yield
7.22%
Market Cap
$24.57 billion
Rev. per Employee
$435,344
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/zigman2/quotes/200416613/delayed
ES : Spain: Madrid
3.77
+0.01 +0.36%
Volume: 3.00M
July 26, 2021 3:02p
P/E Ratio
11.14
Dividend Yield
8.59%
Market Cap
€20.89 billion
Rev. per Employee
€381,890
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/zigman2/quotes/205000522/composite
US : U.S.: Nasdaq
$ 26.05
+0.02 +0.08%
Volume: 1.08M
July 23, 2021 4:00p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$14.72 billion
Rev. per Employee
$520,874
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/zigman2/quotes/209006687/delayed
UK : U.K.: London
182.90 p
-1.85 -1.00%
Volume: 2.61M
July 26, 2021 2:02p
P/E Ratio
12.53
Dividend Yield
4.21%
Market Cap
£18.31 billion
Rev. per Employee
N/A
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