Vodafone has today confirmed media reports that it is in talks with Liberty Global about a possible joint venture in the Netherlands. The discussions do not cover a broader combination of the two companies, Vodafone emphasised.
Vodafone (LSE:VOD) has today confirmed reports that it is in talks with Liberty Global (NASDAQ:LBTYA) about a possible joint venture in the Netherlands.
A combination, it said, would “incorporate both companies’ local operating businesses”. Vodafone emphasised that the discussions are ongoing, adding that they do not extend beyond the creation of a joint venture in the Netherlands.
The development comes as Deutsche Telekom awaits offers for its local subsidiary, T-Mobile Netherlands, a process thought not to have gained significant momentum as Liberty had not registered interest. The Dutch market has become more competitive thanks to the entrance of low-cost 4G provider Tele2.
Liberty Global owns the Netherlands’ largest cableco, Ziggo, but lacks a significant mobile presence. Ziggo’s MVNO has 179,000 customers, compared with its 4.2 million video subscribers and 3.1 million broadband subscribers.
Until last year’s bid for Belgian mobile network Base – expected to win regulatory approval soon – Liberty had relied on an MVNO model.
Vodafone, for its part, is the number two cellco behind incumbent KPN and ahead of T-Mobile.
The UK mobile giant and US-based cableco last year held discussions about a possible fixed/mobile tie-up, which would have created converged players in seven European markets – most significantly in the UK, Germany and the Netherlands.
Despite ending talks in late September, both CEOs had left the door open for renewed talks, noting the strategic rationale of combining fixed and mobile assets.
The tie-up had led to questions about the future of Vodafone’s businesses outside Europe, but Vodafone CEO Vittorio Colao said in November that his company had considered – but decided against a wholesale spin-off. The company did say, though, that it was considering an IPO of its Indian business.
Vodafone said there was no certainty as to when or whether any transaction will be agreed. Liberty has separately agreed to acquire Latin America-focused telco CWC.
