Vodafone has confirmed it is moving further into the European market today (March 17th), after the company announced the purchase of a competitor from Spain.
The firm revealed it has set up a deal to buy the Spanish cable operator Ono, with the agreement reported to be worth as much as 7.2 billion euros (£6 billion).
Vodafone has been making serious strides into the European market in the last few months and the purchase of Ono comes only a few months after the company confirmed it had bought a controlling stake in German cable operator Kabel.
The company is cash-rich at the present time as a result of the massive sale of its stake in Verizon Wireless, which allowed it to raise £84 billion. Vodafone is now planning to spend around £25 billion of this windfall on strengthening its position as one of the leading telecoms operators in Europe.
Jose Maria Castellano Rios, chairman of Ono's board of directors, said the enlarged business is going to help to "drive innovation in the Spanish telecommunications industry".
Ono's private equity owners had been considering a plan to float the company on the Madrid stock exchange, but Vodafone was able to jump in and get a deal done for the firm before any proposals could be approved by the company.
Vodafone is already one of Europe's strongest mobile phone and cable operators and investors will now be keeping a close eye on the company to see which rivals it looks to snap up in the next few months.
In the early stages of trading this morning on the London Stock Exchange, the share price of Vodafone is slightly up compared to the start of the session. By 08:29 GMT, stocks in the firm were more than one per cent up for the day and were still rising steadily.
Last month, Vodafone revealed that it now has 500,000 customers on its Red 4G plans, with the announcement being made by the firm just six months after they went on sale.
Find up to date information on the FTSE 100 and spread betting strategies at City Index
StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.
No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.