Spain's Telefonica to merge British unit O2 with Virgin Media

Liberty Global has agreed to merge its Virgin Media cable company with the O2 mobile business owned by Spain's Telefonica to create a major new force in the British telecoms market.

The companies said on Thursday that O2 would be valued at £12.7 billion (€17.9 billion) and Virgin Media at £18.7 billion, both on a total enterprise value basis.

Under the deal, O2 is to be transferred into the joint venture on a debt-free basis, while Virgin Media to be contributed with £11.3 billion of net debt and debt-like items, the companies said in a joint statement.

The transaction is expected to close in the middle of 2021, once it has received all the required approvals. – Reuters