Back in September, Verizon announced that it had reached an agreement with Vodafone to purchase its 45% stake in Verizon Wireless. The carrier, which was founded in April of 2000, has thus far been a joint venture between the two companies.
With a purchase price believed to be approaching $130 billion, the deal will go down as one of the largest acquisitions in history. And it looks like it will be happening sooner, rather than later, as the FCC has just given the transaction its approval..
From Verizon’s press release (via MarketWatch):
“Verizon Communications Inc. (NYSE, Nasdaq: VZ) today announced that it has received the approvals needed from the Federal Communications Commission to acquire Vodafone’s U.S. group with the principal asset of 45 percent of Verizon Wireless. […]
Randal Milch, executive vice president – public policy and general counsel of Verizon, said: “We thank the FCC for its quick action in approving our transaction with Vodafone, which will provide Verizon with 100 percent ownership of Verizon Wireless and a boost to one of the most important sectors of the U.S. economy.”
The $130 billion transaction will consist of a combination of cash, Verizon common stock and other items. The company says that $58.9 billion will be paid to Vodafone and its investors in cash, and it’s partnered with Chase Bank and others to facilitate.
When it’s all said and done, Verizon will be in full control of the largest carrier in the United States, with some 120 million subscribers. It also has the largest LTE network in the country, with its 4G tech covering most of its footprint in over 500 markets.
The deal is expected to close in Q1 2014.