Liberty Global plc.
), a leading cable MSO (multi service operator) in Europe, recently
offered some concessions to ease the concern of the anti-trust
regulatory body, European Union (EU) Competition Commission
regarding its proposed takeover of Ziggo N.V., the largest cable
MSO in the Netherlands.
However, the details of the concession offered have been kept
under wraps. In Jan 2014, Liberty Global had reached an agreement
to acquire a 100% stake in Ziggo. The regulatory body is likely to
take into consideration the feedback of third parties on the terms
At present, Liberty Global holds a 28.5% stake in Ziggo.
Notably, Liberty Global will pay around $13.6 billion to acquire
the remaining 71.5% stake in Ziggo including its outstanding debt.
The deal will be completed through a stock and cash
The EU regulatory body is currently evaluating the deal and has
expressed its concern over the impact the merger will have on the
Netherlands' cable TV industry and on the Flemish-speaking areas of
neighboring Belgium. The EU deadline for a decision on the deal is
Oct. 17, 2014.
Liberty Global boasts a strong presence in the Dutch cable TV
market as its UPC Broadband Holding BV unit is the second largest
cable MSO in the nation.A merger between Liberty Global and Ziggo
will create a dominant cable TV operator in the Netherlands with
approximately 10.8 million revenue generating units. Ziggo also
competes with telecom operators such as Royal KPN N.V. and
Vodafone Group plc.
Liberty Global is striving to extensively penetrate the European
region with its bundled video, voice and Internet (data) services.
The European markets are still relatively untapped for this unique
The company has also joined the RDK Management LLC., a joint
venture between U.S. cable giants
Time Warner Cable Inc.
). In 2013, Liberty Global acquired the license to test RDK
standard on its next-generation Horizon IP video gateways. Liberty
Global currently carries a Zacks Rank #3 (Hold).
Want the latest recommendations from Zacks Investment Research?
Today, you can download 7 Best Stocks for the Next 30 Days.
Click to get this free report
LIBERTY GLBL-A (LBTYA): Free Stock Analysis
COMCAST CORP A (CMCSA): Free Stock Analysis
VODAFONE GP PLC (VOD): Free Stock Analysis
TIME WARNER CAB (TWC): Free Stock Analysis
To read this article on Zacks.com click here.