Liberty Global has agreed to buy Cable & Wireless Communications in a cash and stock deal worth around US$8.2 billion.
The move, which will enable Liberty Global to boost its operations in Latin America and the Caribbean, was announced by Cable & Wireless on Monday evening.
The U.K.-based company said it was approached directly by Liberty Global and that its board of directors concluded that a sale was in the long-term best interests of the company. The two companies confirmed they were holding talks last month after widespread media speculation on the subject.
"Liberty Global offers scale and world class capabilities and will be an outstanding custodian of our business," said Cable & Wireless Communications CEO Phil Bentley, in a statement.
"The years ahead should bring new opportunities for further success, faster growth and enhanced customer benefits, built on the strong foundation we have created," he said.
Cable & Wireless has narrowed its focus to the Caribbean region in the past couple of years, having sold its assets in Monaco, created a regional hub in Miami and, most recently, acquired Columbus International. The telco paid $1.85 billion for the Barbados-based network operator earlier this year, a move that left Liberty Global chairman John Malone – also a major shareholder in Columbus – with a 13% stake in C&W.
Liberty Global and Cable & Wireless have complementa ry operations in the Americas. Liberty Global offers cable services in Chile and Puerto Rico under its LiLAC umbrella, a recently-created tracking stock for the firm’s Latin American operations, while Cable & Wireless serves the Caribbean islands, Panama and the Bahamas.
"The acquisition of Cable & Wireless represents a watershed moment for our recently created LiLAC platform," said Mike Fries, chief executive of Liberty Global.
"It will add significant scale and management depth to our fast-growing operations in Latin America and the Caribbean, while creating a new regional consumer and B2B powerhouse," Fries said. "Upon completion, the combined business will serve 10 million video, data, voice and mobile subscribers, with leading positions across multiple markets."
Subject to the necessary conditions and approvals, Liberty Global said it expects that the deal will close in the second quarter of 2016.
