Vodafone ends asset swap talks with Liberty Global

Vodafone ends asset swap talks with Liberty Global

Vodafone has terminated talks with Liberty Global over a potential asset swap.

Vodafone and Liberty Global announced they were in discussions earlier this year, however it remained unclear which assets would be involved or if any transaction would be approved.

Liberty Global’s CEO Michael Fries confirmed last month that the company had put ‘no timeframe’ on the talks between the two companies. However Liberty Global and Vodafone have both confirmed that these talks have now come to an end.

The network said: 'On 5 June 2015, Vodafone Group Plc ("Vodafone") confirmed that it was in the early stages of discussions with Liberty Global Plc ("Liberty Global") regarding a possible exchange of selected assets between the two companies.

'Vodafone today announces that discussions with Liberty Global have terminated.'

The discussions previously fuelled rumours that a potential merger between the two companies were on the horizon, after Liberty Global’s chairman John Malone said the two would be a ‘great fit’.

He added that there would be ‘substantial synergies’ if the two companies could work together or ‘combine the companies’.

Speaking to Mobile, Paolo Pescatore, director of multiplay and media at CCS Insight, commented that there were too many barriers facing Vodafone and Liberty Global.

 He said: 'Vodafone and Liberty Global first of all operate completely differently, there also would have been a lot of regulatory issues in terms of some of the assets coming together.

'Ultimately Vodafone need to look to the future towards strengthening its position in multiplay, they need to consider other options and the one on the table is Sky.

'Vodafone have a strong mobile presence in the UK and are moving into broadband and TV, areas in which Sky holds a strong position. The two are complementary and strategically it makes sense.'



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