By Maksym Kozlenko [CC BY-SA 3.0] via Wikimedia Commons
After it was revealed that Vodafone was considering the acquisition of European assets that are owned by the owner of Virgin Media, shares in the mobile phone operator closed the day higher.
Shares in the company closed 2.4 percent higher, at 219.5p, following its statement saying that it was considering the acquisition of “certain overlapping continental European assets” that are owned by Liberty Global.
However, Vodafone added that nothing had been already agreed upon.
This afternoon, the FT reported that the pair were considering swapping parts of their cable and telecoms businesses in European countries including Germany and the United Kingdom.
Liberty is the owner of Virgin Media in the United Kingdom, as well as UPC, a European cable giant, including various fixed-line operations across several countries in Europe.
In 2015, it was revealed that the pair were in discussions over a possible swap in assets. However, during that time they ruled out speculations regarding a merger.
At the time, the chief executive of Liberty, John Mallone, said that a swap could produce significant value for shareholders.
Mallone stated: “There would be very substantial synergies if we could find a way to work together or combine the companies with respect to western Europe.”
In 2016, the two companies merged their operations in the Netherlands, creating a joint venture that is worth €3.5bn (3.1bn).