Liberty Global, Telefonica To Combine UK Operations To Form JV - Quick Facts

(RTTNews) - Liberty Global plc (LBTYA, LBTYB and LBTYK) and Spanish telecom major Telefonica SA (TDE.L, TEF) announced Thursday an agreement to merge their operating businesses in the U.K. to form a 50:50 joint venture.

The companies said the combination of Virgin Media and O2 will create a nationwide integrated communications provider with over 46 million video, broadband and mobile subscribers.

The transaction is expected to close around the middle of 2021 and is subject to regulatory approvals, consummation of the recapitalizations, and other customary closing conditions.

The companies have agreed to provide a suite of services to the JV after closing. These services will principally consist of IT and technology-related services, procurement, brand management and other support services. The annual charges to the JV will ultimately depend on the actual level of services required by the JV.