Vodafone, Liberty Global Merge Dutch Units to Take On KPN

  • Pact to create cost, revenue synergies of about $3.9 billion
  • Wireless, cable provider reach deal after broader talks
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Wireless carrier Vodafone Group Plcand cable giant Liberty Global Plc agreed to combine their Dutch businesses, creating a provider of Internet, TV and mobile services and accelerating deal-making in Europe’s phone industry.

The 50-50 joint venture will probably result in cost and revenue synergies of about 3.5 billion euros ($3.9 billion) after integration costs, with the deal expected to be completed at about the end of the year, the companies saidBloomberg Terminal Tuesday. Vodafone will pay 1 billion euros in cash to Liberty Global to reflect different valuations of their local units.