Liberty Global has agreed to acquire Sunrise Communications in a deal worth 6.8 billion Swiss francs.
Liberty Global offered 110 Swiss francs per share, and Sunrise’s largest shareholder, Freenet AG, has agreed to sell its 24 per cent stake.
In 2019, Sunrise failed bid to buy Liberty’s Swiss business, and this transaction marks a strategic reversal by the US-based company which has been divesting its European assets.
Liberty Global said it approached Sunrise in July with the proposed offer was met with a positive response.
“I’ve always said the market requires rationalisation and we remain opportunistic about strategic developments there,” said Liberty Global chief executive Mike Fries. “The industrial logic of this deal is undeniable.”
Together, the two companies will reach 1.3 million TV subscribers, reflecting approximately 30 per cent market share, according to Liberty Global.
Fries added that Liberty Global had pulled out of Austria and Germany because its operations there lacked scale, while elsewhere it was looking to expand its footprint.
“We are sitting on $10 billion of liquidity right now,” he said. “We felt this is a great market and a great opportunity to put capital to work.”