Verizon and Vodafone have agreed to a $130 billion deal in which the British firm will return its 45% share to its U.S. partner. The tie-up is, of course, subject to scrutiny by the regulators as well as the firm’s shareholders. The deal, one of the biggest in corporate history, means Verizon’s former interest in expanding north of the border into Canada, however, looks to be on ice.
Verizon’s chairman and CEO Lowell McAdam said, “this transaction will enhance value across platforms and allow Verizon to operate more efficiently, so we can continue to focus on producing more seamless and integrated products and solutions for our customers. We believe full ownership will provide increased opportunities in the enterprise and consumer wireline markets.”
There is some controversy in the U.K., as the deal will not generate any tax revenue for Britain–its U.S. arm is owned by a Dutch holding firm and so will not be liable for tax. It’s a similar tax avoidance method employed by Apple, Google, Starbucks, Amazon, and even U2. The IRS, however, will receive $5 billion.