Monday, June 08, 2020

“Nueva Telefónica” begins to take shape with the merger of O2 and Virgin in the United Kingdom

The operation, valued at € 27.8 billion, will give rise to a telecommunications giant in the British market, one of the four strategic areas defined by Telefónica last November. The transfer of 10,000 towers in Germany to Telxius is being prepared in parallel, in line with the plan to strengthen the Infra unit of the Spanish group.

In full confinement and by videoconference, the managers of Telefónica and Liberty Global closed the most important corporate merger of 2020 in the telco sector. José María Álvarez-Pallete, president of the Spanish company, was the architect of these talks, which take Telefónica away from a headache - after several frustrated attempts to divest on British soil - and ratify the roadmap drawn up in November 2019 towards the “Nueva Telefónica”, with a focus on the United Kingdom, Germany, Spain and Brazil. In addition, of course, the relief it will bring in terms of debt reduction.

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