Liberty Global PLC (NASDAQ:LBTYA) and Vodafone Group PLC (LON:VOD) have completed the transaction to combine their Dutch operations to form a 50:50 joint venture (JV).
The JV, called VodafoneZiggo, will operate under both the Vodafone and Ziggo brands.
The combined entity has revenue of more than €4bn.
In total, the joint operation will have around ten million fixed and five million mobile account holders.
Following the recapitalisation of VodafoneZiggo, and after taking into account the €0.8 billion equalisation payment by Vodafone, Liberty Global will receive €2.2 billion and Vodafone will receive €0.6 billion in cash payments.
“This is a highly accretive transaction with significant synergies and a predictable dividend stream. When including over €500 million of cash generated and up-streamed since the announcement of the deal back in February, total proceeds to Liberty will exceed €2.7 billion,” said Mike Fries, chief executive officer of Liberty Global.
Vittorio Colao, Vodafone’s group chief executive, said the merged operation will be a stronger competitor in the Netherlands, which is one of Vodafone’s core markets.