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Liberty Global is in talks with Vodafone to acquire the UK telecom group’s stake in their Dutch joint venture VodafoneZiggo, according to two people familiar with the matter.
The two groups have been in discussions for several months, the people said, with one adding that a potential deal could value Vodafone’s stake at more than €2bn. The discussions are at an early stage, however, and it remains unclear if Vodafone is willing to sell its position.
Vodafone and Liberty Global teamed up to create VodafoneZiggo in 2016 as a joint venture in the Netherlands, with each company owning equal stakes in the business. At the time, the partnership was viewed as a potential precursor to a larger deal between the two companies.
James Ratzer, partner at analysis firm New Street Research, said that speculation about a transaction involving VodafoneZiggo had “swirled around for years, so let’s see if this time it really materialises”.
The talks, which were first reported by Bloomberg, come as European telecoms groups lobby Brussels to loosen existing merger rules in the bloc, arguing that without further consolidation, companies in the sector will struggle to boost investment in areas like 5G. Companies are hopeful that a current review of merger guidelines could lead to a more permissive environment for tie-ups.
Vodafone has been reshaping its European operations, and last year secured approval for a £16.5mn domestic merger with Three UK, creating Britain’s largest mobile operator, with 29mn customers. It has also been steadily selling assets as it tries to streamline its business and pay down debt, including offloading its Italian operations to Swisscom last year.
Liberty Global, which is chaired by so-called “cable cowboy” John Malone, has also been restructuring its European empire in a bid to revive its share price. Early last year, the group — whose headquarters are split between London, Denver and Amsterdam — said that it was accelerating a shake-up of its subsidiaries to create more value for shareholders.
The group also acquired a 5 per cent stake in Vodafone in 2023, following a challenging year for the UK company marked by an activist campaign and the exit of its then-chief executive. Vodafone’s share price has fallen by more than 30 per cent in the past five years.
Representatives for Vodafone and Liberty Global declined to comment.
