Liberty Global to buy Switzerland's Sunrise Communications

US cable company Liberty Global has agreed to buy Swiss telecommunications group Sunrise Communications for CHF5bn (£4.2bn) in cash, or CHF110 per share.

The purchase price represents a 28% premium to the closing share price of Sunrise on Tuesday.

Sunrise's board of directors is unanimously recommending that its shareholders accept the offer, while largest shareholder Freenet AG - which holds around 24% of Sunrise’s capital - has also backed the transaction.

Liberty said the combined business would have CHF3.17bn in revenue, 2.1m mobile post-paid subscribers, 1.2m broadband subscribers and 1.3m TV subscribers, reflecting around 30% market share in each segment.

The company’s chief executive, Mike Fries, said: "The industrial logic of this merger is undeniable, but the real winners are Swiss consumers and businesses. This powerful combination of 5G wireless and gigabit broadband will accelerate digital investment at a time when connectivity has never been more essential.

"Fixed-mobile convergence is the future of the telecom sector in Europe, and now Switzerland will have a true national challenger to drive competition and innovation for years to come."