After several weeks of discussions, it has now been announced that Vodafone has agreed to buy Cable & Wireless in a deal worth £1.04 billion. The buyout will make Vofafone the UK’s second biggest telecoms operator, sitting second to BT.
Until last there was two companies in discussions to take over C&W, but after the Indian based Tata Communication walked away, this left Vodafone has the sole bidder. They are to set to pay 38p a share in C&W, but this could change as negotiations continue.
Vodafone has been keen to expand it’s corporate arm for some time after seeing slow consumer growth. The fact that C&W already provide services to many large companies including Tesco has proved to be a very attractive prospect to Vodafone.
Talking to The Independant, Vodafone Group Cheif Executive Vitorrio Colao said: “The acquisition of Cable & Wireless Worldwide creates a leading integrated player in the enterprise segment of the UK communications market and brings attractive cost savings to our UK and international operations.”
In recent months Cable & Wireless has been hit hard by the reduction in Government spending, as well as a very weak economy. Last year the company posted heavy losses.
As the two companies overlap in many parts of their business, it is feared that job losses are inevitable but Vodafone have moved to assure the current work force that no decisions have been made.