|Visitors pass a logo outside the headquarters of Grupo Corporativo Ono SA in Pozuelo de Alarcon, Spain. (Bloomberg)|
Vodafone Group Plc agreed to buy Spanish cable operator Grupo Corporativo Ono SA for 7.2 billion euros ($10 billion) to boost its offerings in television and broadband Internet, people familiar with the matter said.
The deal, which has been signed and will be announced as early as Monday, may generate synergies valued at about 2.8 billion euros, said one of the people, asking not to be named because the financial details are confidential. Preempting a planned initial public offering approved by Ono’s investors last week, the transaction will likely receive regulatory approval before summer, another person said.
Vodafone, which acquired Germany’s Kabel Deutschland Holding AG last year, is adding landline services to compensate for declining wireless revenue. As Europe’s cable assets become more attractive, Numericable SA of France last week won a bid to combine with Vivendi SA’s SFR mobile-phone unit, beating a rival offer from Bouygues SA, which owns a wireless carrier.
Spokesmen for Ono and Vodafone, the world’s second-largest wireless carrier, declined to comment on the takeover agreement, as did a representative for Ono shareholders Providence Equity Partners and CCMP Capital Advisors LLC. (Bloomberg)