Vodafone Group has announced it will acquire the Spanish and Italian assets of Tele2 for GBP537 million (USD1.1 billion). The Newbury-based mobile phone operator said it will pay cash for the assets in a debt-free deal. Both Tele2 subsidiaries offer fixed-line and broadband internet services.
Vodafone Chief Executive Arun Sarin said the deal is not expected to materially impact on the Group’s ongoing capital intensity ratio in Europe. It is also expected to be broadly neutral to adjusted earnings per share in the first full year after acquisition, excluding the impact of acquired intangible asset amortisation. ‘This acquisition … will generate substantial time to market benefits in Italy and Spain, where low broadband penetration and the market structure make ownership of fixed broadband assets attractive,’ Mr Sarin said in a statement. ‘We have now established a clear route to delivering fixed broadband services in each of our major European markets,’ he said.