Global telecom giant, Vodafone is set to acquire Cable and Wireless Worldwide (CWW), a UK based operator of fiber network, for about US $ 1.67 billion.
India’s Tata Communications was also in the race to acquire CWW but decided to quit after it failed to reach an agreement with the company on the offer price. Tata Communications had reportedly appointed Standard Chartered as an adviser for the acquisition.
Cable & Wireless Worldwide has a market value of $1.2 billion and has wide ranging assets including UK’s largest core fiber network and an international enterprise unit. The company offers voice, data and hosting services to major British companies such as Next, Tesco and United Utilities. It also operates an international cable network connecting more than 150 countries.
Following the pull back by the Tata group company, Vodafone was the only contender left for the company. Vodafone is looking to strengthen its enterprise business in the UK and abroad with the acquisition.
"Vodafone Europe and CWW have reached an agreement on the terms of a recommended cash offer pursuant to which Vodafone will acquire the entire issued and to be issued ordinary share capital of CWW," Vodafone said in a filing to the London Stock Exchange.