Liberty Global has announced it will acquire the Swiss firm Sunrise Communications for $7.4 billion. The acquisition price represents a 32% premium to the target’s share price over the last 60 days.
One of the most attractive aspects of the combination is the major cost synergies that are expected once the two telecom players merge. They are expecting $3.4 billion in cost synergies, mostly due to savings on CapEx.
Following the acquisition, Liberty will have approximately 30% market share in all three of its key categories in Switzerland. It will increase its share to 2.1 million mobile post-paid subscribers, 1.2 million broadband subscribers and 1.3 million TV subscribers.