Vodafone (NASDAQ: VOD ) will soon expand outside the wireless space in continental Europe with the purchase of a big asset in Germany. The European Commission, the executive body of the European Union, has approved the company's purchase of cable provider Kabel Deutschland Holding.
Vodafone launched a public takeover attempt for the German concern at the end of July, offering 84.50 euros ($114.25) per share in cash. The company also promised to follow through with the 2.50 euros ($3.38)-per-share dividend KDH pledged to its stockholders. All told, the telecom will spend an estimated 7.7 billion euros ($10.4 billion) to acquire its target.
In the press release announcing its decision, the EC said it found that "in markets where the parties' activities overlap, the increase in market share resulting from the proposed transaction is insignificant and will therefore not appreciably alter competition."
According to an SEC document it filed on Sept. 17, Vodafone had secured more than 76% of KDH's outstanding shares. It has extended its deadline for existing stockholders to tender their shares to Sept. 30, more than two weeks past the original cutoff date of Sept. 11.