The 50-50 Dutch joint venture between Liberty Global and Vodafone has been completed, the companies said in a press release issued on December 31. The company will trade as VodafoneZiggo the Financieele Dagblad reported on Monday.
UK-based Vodafone paid Ziggo’s US parent Liberty Global €800m, down from the €1bn equalisation fee originally agreed because of Ziggo’s increased debt.
The joint venture is expected to generate an annual €210m in synergy savings from 2021, down considerably from the yearly €280m originally expected.
VodafoneZiggo will pose a big threat to Dutch market leader KPN. Vodafone is the country’s second largest mobile phone company. And Ziggo which combines Liberty Global’s two Dutch cable companies Ziggo and UPC, controls 90% of the Dutch cable market.
In the 12 months ended September 30 2016, the combine generated gross operating profit of €624m on turnover of €4.2bn.
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