US cable giants Charter and Cox pursue 34.5 billion dollar merger
The transaction, which needs approval from Charter shareholders as well as regulators, includes 12.6 billion (£9.4 billion) in debt.
Charter Communications has offered to acquire Cox Communications, a 34.5 billion dollar (£26.3 billion) merger that would combine two of the largest cable companies in the US.
Cox is the third largest cable television company in the country, with more than 6.5 million digital cable, internet, telephone, and home security customers.
Charter Communications, known to many as Spectrum, has more than 32 million customers in 41 US states.
Charter said on Friday that it will acquire Cox Communications’ commercial fibre and managed IT and cloud businesses.
Cox Enterprises will contribute Cox Communications’ residential cable business to Charter Holdings, an existing subsidiary partnership of Charter.
Cox Enterprises will own about 23% of the combined company’s outstanding shares.
The transaction, which needs approval from Charter shareholders as well as regulators, includes 12.6 billion (£9.4 billion) in debt.
The combined company will change its name to Cox Communications within a year after closing.
It will keep Charter’s headquarters in Stamford, Connecticut, and have a significant presence on Cox’s Atlanta, Georgia campus following the closing.
After the deal is complete, Charter chief executive Chris Winfrey will become president and chief executive of the combined company.
Cox chief executive and chairman Alex Taylor will serve as chairman.
Shares of Charter rose 6% before the market open.
