California Public Utilities Commission (CPUC) has unanimously voted to approve Frontier Communications’ proposed acquisition of Verizon’s wire line, broadband and video operations in California.
That will include the FiOS network. A press release from the company stated that Frontier has received all other necessary regulatory clearances, including those from the Federal Communications Commission, the U.S. Department of Justice and the Public Utility Commission of Texas.
It now paves way for the $10.54 billion acquisition in California, Florida and Texas. The transaction is expected to close at the end of March 2016. Daniel J. McCarthy, the President and CEO of Frontier Communications said they are happy with the approval because it clears all the hurdles they were facing.
He said Frontier is now rearing to go more than ever. “With this final approval, we look forward to completing our transaction with Verizon which represents a significant transformation for Frontier. We will transition our revenue to a more diversified mix, improve our growth prospects, create sustainable value for our shareholders and provide a great experience for our new Frontier customers in California, Florida and Texas.”
Kathleen Abernathy, the Executive Vice President of External Affairs for Frontier equally welcomed the approval. She stated that their customers were well involved with their input being taken on board at different forums held across their market bases. “We are very pleased the full CPUC approved the acquisition and our settlements with various parties to the proceeding. The CPUC process leading to today’s approval informed the settlement negotiations and provided a forum for input from consumers across the state. We welcome the opportunity to expand our business in California.”
The company has listed down key risks and uncertainties that might undermine the acquisition deal which include but not limited to their ability to complete the acquisition of Verizon’s California, Florida and Texas wire line operations including the ability to complete the financing of the acquisition.