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The two companies are holding talks to integrate Telefónica’s O2 mobile unit and Liberty Global’s Virgin Media business.
Telefónica and Liberty are negotiating the possibility of merging their businesses in the United Kingdom. The Spanish telecommunications operator, present in the United Kingdom through the O2 brand, is negotiating with the parent company of VTR the possibility of joining its businesses in the British market, according to Bloomberg.
The two companies are holding talks to integrate Telefónica’s O2 mobile unit and Liberty Global’s Virgin Media business. According to sources familiar with the negotiations, the agency cites, if they reach an agreement, a transaction could be announced in the next week.
If a deal is reached, it would be the largest operation in the UK telecommunications industry since 2015, when ex-monopoly BT agreed to buy mobile operator EE for £ 12.5bn ($ 16bn), according to data compiled by Bloomberg.
Other sources say the talks could still be delayed. Telefónica presents its accounts for the first quarter on May 7.
The titles of both groups were rising in New York. Telefónica’s ADRs rose more than 5%, while Liberty Global’s shares soared 12%. The four Spanish Stock Exchanges -Madrid, Barcelona, Bilbao and Valencia- will remain closed today for the celebration of May 1.
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