Vodafone Group announced an agreement to sell its fixed subsidiary in the Netherlands to T-Mobile for an undisclosed sum.
The sale of the unit, named Vodafone Thuis, was in the offing, after Vodafone Netherlands and Liberty Global’s Ziggo agreed to divest the business, as a condition to gain clearance for their own merger in the country.
Its 50:50 joint venture, combining the country’s second largest mobile operator with its largest cable company, is expected to offer a converged threat to incumbent KPN, and received clearance earlier this year.
The EC stated at the time making the divestment “entirely removes the overlap between the activities” of Vodafone Netherlands and Liberty Global’s Ziggo.
Vodafone’s fixed unit has approximately 150,000 consumer broadband customers in the country, and represents a sign that T-Mobile’s parent Deutsche Telekom is now preparing to compete in the market, despite apparently looking to exit the country late last year.
Before securing the merger with Vodafone, Liberty Global had entered into talks with the German operator over a possible acquisition of the unit.
Deutsche Telekom had put it up for sale in October 2015, with Liberty Global, as well as private equity investors Appollo and Warburg Pincus, interested in a possible €2.5 billion deal.
When news of the sale first broke, a valuation of €5 billion was touted.
It was then reported the German operator shelved plans for the sale, after its valuation was not met.