Vodafone to pay €474 million for rest of Arcor

Vodafone to pay €474 million for rest of Arcor
Photo: DPA
British mobile phone giant Vodafone said on Monday it had agreed to buy the 26.4-percent interest in German fixed-line unit Arcor it does not own from Deutsche Bahn and Deutsche Bank for €474 million ($737 million) in cash.

Arcor is Vodafone’s biggest fixed-line service provider in Europe and will increase Vodafone’s competitiveness in the German broadband market, which is growing at nearly 30 percent per year, the British company said in a statement. Arcor has 2.6 million DSL lines in Germany, representing 14 percent market share.

“A new, economically stronger communications firm has been created with a mobile network, a fixed network, data service and broadband,” Friedrich Joussen, chief executive officer of Vodafone in Germany, said in a release.

Joussen said the company aims to increase its market share to 20 percent.

Vodafone employs some 15,000 people in Germany. Arcor alone employs about 3,700 people. The company said it does not plan to cut jobs, though some employees could be reassigned.