News
Cable group hints at further consolidation in Latin America and Caribbean as new acquisition is merged into its LiLAC business.
Liberty Global on Monday announced it has closed the acquisition of Cable & Wireless Communications, in line with the projected timeline it shared a month ago.
The U.S. cable group said the deal was valued at US$7.4 billion (€6.5 billion), slightly less than the sum it predicted when it announced the cash-and-stock transaction in November.
Cable & Wireless Communications (CWC) will now become part of Liberty Global’s Latin American and Caribbean business, or LiLAC Group, which was launched as a tracking stock in mid-2015.
"I couldn’t be more excited about the potential of LiLAC and CWC together," said Liberty Global chief executive Mike Fries.
"We are joining two high-growth businesses in a region that is both underpenetrated and underserved in broadband, mobile data and pay TV services," Fries said. "By combining our operations, we are creating a unique and well-diversified Latin America and Caribbean investment vehicle, which we believe will enhance long-term equity value for our shareholders."
The combined entity will serve 10 million voice, broadband, video and mobile customers across 20-plus countries, Liberty Global said, adding that annual revenues will come in at north of $3.5 billion. LiLAC is currently the bigger presence in broadband and video, while C&W brings more than 4 million mobile customers to the new venture.
The two firms have highly complementary operations in the region, with LiLAC offering cable services in Chile and Puerto Rico, while C&W serves the Caribbean islands, Panama and the Bahamas.
Liberty Global predicted that the merged entity "will become the leading platform for further consolidation in Latin America and the Caribbean," but did not add further details of its ambitions at this stage.
Fries paid tribute to outgoing C&W chief executive Phil Bentley and welcomed a new interim CEO to the post in the shape of former C&W consumer group president John Reid.
"We look forward to working closely with John over the next six months as we evaluate how best to structure and integrate CWC into the LiLAC Group and jointly explore new opportunities for growth and expansion," Fries said.
