Cable & Wireless Communicatio ns on Tuesday announced that it closed the acquisition of Columbus International.
The telco agreed to buy 100% of the Barbados-based Americas network operator for US$1.85 billion in cash and stock in November. It also assumes Columbus’ net debt as part of the deal, which stood at $1.17 billion in the middle of last year.
The deal attracted intense regulatory scrutiny in a number of markets across the Caribbean, with a number of authorities and rival operators – Digicel in particular – expressing concerns that it could distort competition.
"There has been an extensive and professional regulatory review, with appropriate remedies," said Cable & Wireless CEO Phil Bentley, without giving further details on those remedies.
However, the telco admitted that it has yet to receive all the approvals it requires in a small number of markets and therefore cannot yet begin the integration process in those locations.
"We will therefore continue to support the local regulatory due process until we have the green light to move forward in those markets," Bentley said.
Elsewhere, the company is ready to start investing in its new operations. It has pledged to spend $1.5 billion to boost coverage, speed and customer experience.
As part of the process of integrating the two businesses, Cable & Wireless is carrying out a full review of all its brands, including Columbus’ TV and Internet brand Flow and its own retail brand Lime, as well as the firms’ business and wholesale names.
"No decision has yet been made," Bentley said.
Columbus has around 700,000 residential cable TV, broadband and telephony customers in the Caribbean, most under the Flow brand, with the exception of Antigua where it operates as Karib Cable. It provides subsea network connectivity and enterprise services via its Columbus Networks and Columbus Bu siness Solutions units, and partners with Cable & Wireless in an undersea cable network in the Caribbean, Central America and the Andean region. Its services overlap with those of Cable & Wireless in a number of markets.
"Not only do we add significant fibre optic submarine backhaul and terrestrial broadband and TV capability to our leading mobile and legacy copper networks in The Caribbean, but our complementary B2B divisions can now offer geographical focus and a wider product offering in the faster-growing Latin American markets," Bentley said.
"We expect the operating synergies to be significant," he added.
Also on Tuesday, Cable & Wireless announced that it will add a number of Columbus directors to its board, including CEO Brendan Paddick.
