Verizon and Vodafone Enter $130 Billion Wireless Deal

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Verizon Communications Inc. agreed to acquire Vodafone Group Plc’s 45% stake in Verizon Wireless in a $ 130 billion transaction that gives it full control of the most profitable U.S. mobile-phone carrier.

The deal has been approved by both companies’ boards and is expected to be completed in the first quarter of 2014, according to a statement released Monday. Verizon will pay Vodafone $ 58.9 billion in cash, financed with credit from JPMorgan Chase & Co., Bank of America Corp., Barclays Plc and Morgan Stanley. The company also will issue $ 60.2 billion in stock to Vodafone shareholders.

The acquisition ends a 14-year partnership, and will let Verizon collect all the future profits from the wireless unit, while allowing Vodafone to exit a business whose dividends and operations it didn’t control. If completed at $ 130 billion, almost Verizon’s entire market value, the deal would be the biggest since Vodafone’s acquisition of Mannesmann AG in 2000. Read more…

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