Liberty Global has struck a deal to acquire Vodafone’s 50% shareholding in Dutch joint venture VodafoneZiggo, paying €1.0 billion in cash and granting Vodafone a 10% equity interest in a new Benelux holding company to be called Ziggo Group.
The move had been on the cards for at least 12 months. The transaction is expected to close in the second half of 2026, subject to regulatory approvals.
Under the proposed structure, Ziggo Group will hold Liberty Global’s interests in VodafoneZiggo and Belgium’s cable and mobile operator Telenet. Both VodafoneZiggo and Telenet will continue to operate under their existing brands and within their current “credit silos”, with their management teams maintaining responsibility for execution.
Liberty Global is framing the move as a simplification play designed to “fully unlock” value in its Benelux assets. The company plans to list Ziggo Group in Amsterdam in 2027 and, subject to shareholder approval, spin off 90% of Ziggo Group shares to Liberty Global shareholders. Vodafone would retain its 10% stake, with Vodafone stating it has an option to sell that stake to a third party if a spin-off does not occur within 18 months after completion.
Operationally, Liberty Global and Vodafone have also agreed long-term service arrangements around VodafoneZiggo to maintain continuity through the transition. Vodafone says it will provide certain services, including brand licensing, for total consideration of €625 million over 10 years.
Liberty Global CEO Mike Fries said: “By combining these assets, we are creating a regional powerhouse comprised of two converged national FMC champions operating in rational markets — an attractive platform with strong prospects for sustained free-cash-flow generation.”
Liberty Global is targeting combined adjusted free cash flow of around €500 million by 2028, alongside an expected €1 billion combined net present value from synergies and incremental services (net of integration). The group also set out a deleveraging roadmap to around 4.5x by 2028, supported by mid-term adjusted EBITDA growth, adjusted free cash flow generation, equity capital markets optionality and asset sales.
One asset mentioned in that context is Wyre in Belgium: Liberty Global said it is in the process of selling around 50% of its stake, with proceeds earmarked to support deleveraging at Telenet, while the remaining stake would be retained 100% by Liberty Global.
Vodafone and Ziggo have been together since 2016, though had maintained separate branding.
