Vodafone And Verizon Reached An Agreement

The Vodafone Group decided to sell its 45% stake in Verizon Wireless for $130 billion according to the last press releases related to the negotiations. Sources are saying that Vodafone will get $58.9 billion in cash, $60.2 billion in Verizon stock and additional $11 billion in the beginning of the next year. For the following period, Vodafone is planning to extend on the European market which is its main target. In this respect, the company is about to make serious investments in countries like Spain, Italy, Germany and Portugal. Another area that is in question is Africa which is considered a market with full of potential. This transaction would also help Verizon Communication develop on the U.S. market and beat its competitors, boosting its profits. Because of a clause introduced in 2002 in the Britain capital gains legislation, allowing companies to return cash from large disposals to the U.K. without paying taxes, chances are that the great deal of money resulting form this transaction will go to the U.K..

As the deal is nearing completion, Vodafone’s stocks are getting to highs that haven’t been reached in a decade. Holders of the Vodafone’s shares are expecting as well a better payout resulting from their investments, situation that could radically change on the long term. The second largest transaction in history is expected to improve the image and profits of both the companies involved.