Liberty Global completes $7.4 billion CWC acquisition

Multinational cable company Liberty Global has completed the $7.4 billion acquisition of Cable & Wireless Communications Plc, which gives it a strong presence in the Caribbean and Latin America.

The deal was announced last November and seems to have had a relatively easy regulatory journey. CWC was demerged from Cable & Wireless in 2010 and has focused on its historical strength in the Caribbean. The combined companies will serve ten million video, voice, broadband and mobile subscribers in more than 20 countries, and are expected to generate over $3.5 billion in annual revenue.

“This is a big moment for us and I couldn’t be more excited about the potential of LiLAC [Liberty LATAM and Caribbean] and CWC together,” said Liberty Global CEO Mike Fries. “We are joining two high-growth businesses in a region that is both underpenetrated and underserved in broadband, mobile data and pay TV services. By combining our operations, we are creating a unique and well-diversified Latin America and Caribbean investment vehicle, which we believe will enhance long-term equity value for our shareholders.

“I would like to personally congratulate Phil Bentley, outgoing CEO of CWC, for his great work over the last two and a half years. I would also like to welcome John Reid as interim CEO of CWC. We look forward to working closely with John over the next six months as we evaluate how best to structure and integrate CWC into the LiLAC Group and jointly explore new opportunities for growth and expansion. John was previously President of CWC’s Consumer Group and also held other high-profile management roles at Columbus Communications and Persona Communications.”

Liberty Global’s main interests in the region are Chile, with VTR, and Puerto Rico. CWC is mainly a Caribbean player, which augmented its position with the acquisition of Columbus last year, but the graphic accompanying the announcement below indicates it also has operations in Peru, Colombia and Central America.