Verizon Communications announced today it has agreed to buy out Vodafone Group Plc’s 45 percent stake in Verizon Wireless for $130 billion, capping its decade-long effort to win full control of the most profitable mobile service provider in the United States.
Under the terms of the deal, Vodafone would get $58.9 billion in cash, $60.2 billion in Verizon stock, and an additional $11 billion from smaller transactions that would take the total deal value to $130 billion, Verizon said in a statement.
The boards of Verizon and Vodafone have unanimously approved the sale, which is subject to customary closing conditions, and was expected to close in the first quarter of 2014.
The deal marks the third-largest announced acquisition in corporate history and British telecom giant Vodafone’s exit from the large but mature U.S. mobile market.
Verizon has agreed to pay $130 billion to acquire the 45% stake of its wireless business that British wireless carrier Vodafone owns.
However, despite the sheer volume of the deal, it’s not expected to have any significant impact on consumers or the operations of Verizon. Although Vodafone first acquired a stake in Verizon in 2000, it has had very little influence on Verizon’s day-to-day operations.
Vodafone was involved in the first largest deal on record as well, a $172 billion acquisition of Mannesmann AG in 2008.
Verizon is also looking to enter Canada, a move which has Canadian incumbents Rogers, Telus, and Bell less than pleased.