October 31, 2005

Sweden's state-run telecommunications provider Telenor said it will acquire the country's third-largest wireless provider, Vodafone Sweden, for $1.25 billion.

The deal includes Vodafone Sweden's 1.5 million customers, and increases Telenor's customer base to 5.6 million subscribers.

Telenor noted the deal strengthens its competitive position in the market and also bolsters its offering to the business market, where Vodafone Sweden is its largest competitor.

Vodafone Group plc said it plans to take an $884 million impairment charge in its six-month's financial results ended Sept. 30 due to the sale. The deal is expected to close early next year.

Source: RCR News