The Federal Communications Commission today approved a key provision in Verizon Communication’s attempt to buy Vodafone Groups stake in Verizon Wireless.
The FCC said that it will be acceptable for more than 25% of Verizon’s ownership to come from foreign investors after the deal closes. There is a limit on the amount to 25% because Verizon controls spectrum access licenses in the U.S. Due to the way the deal is structured, foreign ownership of Verizon Communications may at times exceed that percentage, but the FCC won’t oppose it. This was the only approval Verizon needed from the FCC, though the deal still requires shareholder approval. Verizon Wireless is a joint venture that is 55% owned by Verizon Communications and 45% owned by Vodafone Group.
Verizon Communications agreed in September to buy out Vodafone Group’s stake in Verizon Wireless for $130 billion. Verizon will pay Vodafone primarily in cash and stocks. The deal is expected to close in the first quarter of 2014.
