California approves Charter's $34.5B Cox merger

M&A · Partnership

โดย Seeking Alpha·

Summary · why it matters

California has granted final state approval for Charter Communications' $34.5 billion acquisition of Cox Communications, clearing the way for the deal to close next week. The California Public Utilities Commission approved the merger subject to settlement agreements and enforceable conditions, including new affordable broadband offerings for low-income residents, a $30 million investment in digital inclusion, and at least $275 million for network upgrades in the state. The commission also secured customer protections such as automatic bill credits for qualifying outages of two hours or longer, continued honoring of eligible residential price-for-life agreements, and elimination of equipment exchange fees. Charter announced the cash-and-stock deal last year with an enterprise value of about $34.5 billion and will assume roughly $12 billion of Cox's outstanding debt. The combined company will adopt the Cox Communications name within a year, with Charter's Spectrum becoming the consumer-facing brand, and the merger is expected to create the largest U.S. cable TV and broadband provider, surpassing Comcast.