Sunrise acquires UPC Switzerland for CHF 6.3 billion
Major merger in the Swiss telecommunications market: Sunrise is acquiring UPC Switzerland, aiming to become a stronger competitor in the Swiss market. The purchase price is 6.3 billion Swiss francs.

Sunrise announced Wednesday that it has signed a binding agreement to buy UPC Switzerland, a wholly owned subsidiary of Liberty Global. The price: CHF 6.4 billion.
UPC Switzerland is the leading cable network operator in Switzerland with access to 2.3 million households. The company owns a future-proof, Switzerland-wide cable network of a high technical standard.
With the purchase, Sunrise also assumes outstanding debts of the UPC Group in the amount of CHF 3.6 billion. Sunrise will finance the remaining CHF 2.7 billion for the purchase price by issuing a rights issue of CHF 4.1 billion.
The new company will continue to bear the name Sunrise. The aim is to become the best Swiss telecommunications company for customers, employees and shareholders, Sunrise wrote on Wednesday evening. The goal of the new company is to gain market share through quality, innovation and competitive pricing. The merged group will be better positioned to compete with direct benefits for the Swiss economy and consumers.
Remarkable: Just one year ago there were rumors that the UPC Group wanted to swallow Sunrise (Werbewoche.ch reported). This would have made UPC the number two in the Swiss telecoms market at a stroke. Now the company is being integrated into Sunrise.
Commenting on the transaction, Olaf Swantee, CEO of Sunrise, said: "Today's announcement is an important milestone for Sunrise, our customers, employees and shareholders. Together with UPC Switzerland, we will create a stronger and truly convergent challenger as well as significant value for our shareholders. We will accelerate innovation and improve the customer experience, based on the scale of the new company and the outstanding next generation network infrastructure. We have conducted a comprehensive due diligence process that gives us high confidence that we can realize the synergies. We are excited about the prospects of the combined company."
Peter Kurer, Chairman of Sunrise, added: "We have full confidence in management's ability to smoothly integrate UPC Switzerland and gain significant synergies from the merger, continue to deliver strong financial results and reward our shareholders for their support."
UPC CEO Severina Pascu on the acquisition: "The agreement reached today creates a new, fully converged national challenger in the Swiss market." And Eric Veter, Chairman of the Board of UPC Switzerland: "The coming together of the two companies now creates a unique provider in the communications and entertainment industry." (hae)
The merger is subject to approval by the Competition Commission (Comco). Approval is expected in the course of 2019.












