Vodafone confirms Arcor buyout

20 May 2008

British group Vodafone confirmed yesterday that it is to buy the 26.4% interest in German fixed line unit Arcor it does not already own from Deutsche Bahn and Deutsche Bank for a total of EUR474 million (USD737 million) in cash. According to a company statement, Arcor is Vodafone’s biggest fixed line service provider in Europe and will increase Vodafone’s competitiveness in the German broadband market, which is growing at nearly 30% annually. Arcor had approximately 2.6 million DSL connections in Germany at the end of March 2008, representing a 14% market share. ‘A new, economically stronger communications firm has been created with a mobile network, a fixed network, data service and broadband,’ said Friedrich Joussen, CEO of Vodafone in Germany, adding that his company aims to increase its market share to 20%.

Germany, Vodafone Germany, Vodafone Group