Vodafone has agreed to acquire the 26.4% interest in German fixed-line carrier Arcor that it did not already own from Deutsche Bahn and Deutsche Bank for £378million.
With full ownership of Arcor, the leading alternative fixed-line carrier in Germany with 2.6 million DSL lines, representing 14% market share, Vodafone continues to push the growth of its internet operation.
In the UK Vodafone is linked with a purchase of fixed line provider Tiscali.
The transaction to buy Arcor enables Vodafone Germany to participate more effectively in the rapid development of the German broadband market, which is growing at just under 30% per annum.
Arun Sarin, chief executive of Vodafone, said: ‘This deal is consistent with our total communications strategy.
‘By taking full control of Arcor and aligning it more closely with Vodafone Germany we will leverage the greater scale this presents, and generate synergies and substantial time to market benefits within Europe’s largest telecommunications market.’