LBTYA Liberty Global Ltd

U.S.-based cable operator Liberty Global PLC said Monday it is setting up a joint venture combining its operations in the Netherlands with Vodafone Group PLC.

Vodafone will pay Liberty Global, the Europe-focused operator controlled by cable tycoon John Malone, 1 billion euros ($1.12 billion) as part of the deal, according to a statement. Liberty said after integration costs, the 50-50 joint venture would be worth about 3.5 billion euros in terms of combined revenue and capital expenditures.

The tie-up would merge Liberty Global's cable and Internet businesses with Vodafone's mobile operations to create a Netherlands-wide communications provider with more than 15 million subscribers, Liberty Global said.

The tie-up is expected to close around the end of 2016 and will be subject to regulatory approvals, Liberty Global said in a statement.

Liberty Global, with headquarters in both Englewood, Colo., and London, also reported Monday its financial results for the three months and year ended Dec. 31. The firm's operating income for 2015 rose 5% from a year earlier to $2.3 billion.

European cable and telecom operators have embarked on a wave of consolidation in recent years, keen on benefiting from so-called "quadruple-plays": providing fixed telephony, mobile, Internet broadband and pay-television, with the goal of winning consumer loyalty and increasing subscriber revenue.

Write to Newley Purnell at newley.purnell @wsj.com

(END) Dow Jones Newswires

February 15, 2016 22:25 ET (03:25 GMT)

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