Cable and Wireless Communications, Plc (CWC) yesterday announced that it had completed its US$1.85 billion acquisition of 100 per cent of the equity of Columbus International Inc.
The finalisation comes almost five months after the two companies announced the plan in early November 2014 and follows approvals last week from the Telecommunications Authority of T&T (TATT) and the Barbados Fair Trade Commission (FTC).
In the case of TATT, approval was based on the condition that CWC divest its 49 per cent shareholding in TSTT within one year.
“This is a transformational deal for Cable & Wireless Communications. Columbus Communications is an outstanding business; not only do we add significant fibre optic submarine backhaul and terrestrial broadband and TV capability to our leading mobile and legacy copper networks in the Caribbean, but our complementary B2B divisions can now offer geographical focus and a wider product offering in the faster-growing Latin American markets,” CWC CEO Phil Bentley, said in a statement from the company’s headquarters in London.
“We expect the operating synergies to be significant; together, the new merged company creates the opportunity to invest more, grow faster and provide an improved customer experience and, most importantly, a development opportunity for our people that either company could never have achieved on their own.
“There has been an extensive and professional regulatory review, with appropriate remedies.
“We are pleased we now have the necessary government support to conclude this important transaction and to start making the financial commitments required to deliver an outstanding customer experience and to enhance the telecommunications infrastructure and economic development of the communities we serve,” the statement added.
Bentley said as part of the integration process, the company “is undertaking a full review of all the brands we currently operate under, including the Flow and Lime brands as well as the business and wholesale brands,” but added that no decision has yet been made.
Commenting on the merger process and next steps, Bentley said: “Most of the markets we operate in have approved our integration plans and therefore today we can start to release some of the US$1.5 billion investment monies we have set aside to provide our customers with an unrivalled telecommunications experience, improving coverage, reliability, products and speeds, and providing a welcome boost to both jobs and the economy in the countries in which we operate.
“In a small number of markets where we have yet to receive all the necessary approvals required, we cannot commence our integration and investment plans; we will therefore continue to support the local regulatory due process until we have the green light to move forward in those markets.”
Good Combination
In a media statement late yesterday from Barbados, Columbus said it believes the combined strengths of both companies will accelerate growth, provide the necessary scale to enhance the customer experience and help to allow Columbus to achieve its goal to become the best service provider and employer of choice in the region.
“The combination of Columbus' pay TV capabilities and next-generation, state-of-the-art fibre networks with CWC’s region-leading mobile footprint and existing fixed line infrastructure will significantly expand product and service offerings for customers and also advance CWC’s quad play ambitions.
“The combined business will also deliver the benefits of superior quality network infrastructure, fixed-mobile products and bundles, superior TV content at competitive rates and a more attractive portfolio of products and services in the B2B and B2G segments,” Columbus said.
“For both companies, the combination transaction will enable greater focus on the Caribbean, Andean and Latin American markets, a region that offers attractive growth.”