1st September 2020
Daniel Pfund, Senior Financial Analyst
Last year Sunrise wanted to acquire UPC Switzerland (belonging to the American group Liberty Global) in order to combine its mobile network with access to fixed lines (via UPC’s cable TV network). After obtaining the approval of the competition commission (COMCO), Sunrise’s main shareholder (Freenet) finally refused the takeover.
But Sunrise did not say its last word. Indeed, if it could not buy UPC, nothing prevented UPC from buying Sunrise. Mid-August Liberty Global therefore announced the takeover of Sunrise, with the blessing of Freenet this time (thanks to a quick gain of 32% on the average Sunrise share price of the last 60 days!). The total amount of the transaction is CHF 6.8 billion.
In a few years’ time, we will probably see the new merged Sunrise on the stock exchange again because Liberty Global never intended to keep UPC Switzerland in its group.