Europe Clears Vodafone's $10.4 Billion Kabel Deutschland Takeover
The U.K. mobile giant outbid John Malone's Liberty Global for Germany's leading cable TV provider.
COLOGNE, Germany – The European Commission has cleared Vodafone's planned $10.4 billion (€7.7 billion) takeover of leading German cable TV group Kabel Deutschland.
Vodafone last week secured the necessary support of Kabel Deutschland shareholders to push through the deal.
The takeover will see the U.K. mobile giant hook up with Kabel Deutschland's operations, which focus primarily on supplying cable TV and Internet access to millions of subscribers across Germany.
The deal is being closely watched by an industry that has seen increasing consolidation among cable, Internet and mobile providers. Vodafone's big bet is that it can convince German subscribers to sign up to receive all key services – including cable TV, mobile, Internet and fixed-line telephony – from a single provider.
The fact that Vodafone is not yet a significant player in German cable or Internet services played in the company's favor, with European regulators judging the new deal would not result in a significant increase in market share in any one area.
Vodafone outbid John Malone's Liberty Global for Kabel Deutschland.