Vodafone to acquire Spain’s Corporativo Ono
Global telecom giant, Vodafone has said on Monday that it has agreed to buy Spanish cable operator Corporativo Ono in a deal valued at _7.2 billion.
The acquisition will allow the company to expand its presence in the Spanish TV and broadband market. Following the acquisition, Vodafone will have 1.9-million customers in Spain to complement its mobile service. It will allow the company to better compete with the likes of Telefonica and Orange.
The company has been looking to acquire cable companies as it faces stiff competition in the UK market. Vodafone has indicated that it might be planning to enter into the pay-TV market in the UK as the company is looking to revive its business. The company is trying to revive its business after its UK revenues fell for the seventh quarter. Chief executive Vittorio Colao said that the company might enter the market in six to seven months.
The company is planning to expand its presence in the market and some suggest that it might acquire TalkTalk or from an alliance with Sky. Vodafone has moved into pay-TV in Portugal and New Zealand and is about to acquire German pay-TV and broadband firm Kabel Deutschland. The deal with Ono will expand its presence in the Spanish market.
Vodafone shares rose 1.8 per cent to 226.05p in London on Monday morning.