Vodafone confirms talks with Liberty Global over Netherlands JV

Vodafone confirmed on Tuesday that it is in discussions with Liberty Global about the possible creation of a joint venture in the Netherlands that would incorporate both companies’ local operating businesses.

“The discussions are ongoing and do not extend beyond the creation of a joint venture in the Netherlands,” Vodafone said, adding that there is no certainty a deal will be agreed.

The statement was in response to media speculation earlier in the day, after Bloomberg reported that the companies had resumed talks about possible asset swaps in Europe.

Sources had told Bloomberg that the Netherlands, where Vodafone operates a mobile business and Liberty owns cable TV assets, would be a focus of the talks.

Talks between Vodafone and Liberty were confirmed in June of last year but broke down in September as they remained deadlocked over how to successfully create value that both sides agreed was there.

Atif Latif, director of trading at Guardian Stockbrokers, said: “We see this as a starting point for the potential of more transactions to materialise. Talks have been around for a while then went quiet over the last few months but we continue to see rationale for this to be one to happen this year.

“VOD is seeing improvements in Europe and Liberty should take comfort in seeing the strategic fit between both companies.”

At 1347 GMT, Vodafone shares were down 1% to 223.45p.