The $130 billion deal represents the third biggest corporate transaction, behind Vodafone's 1999 deal to buy Germany's Mannesmann and AOL's purchase of Time Warner in 2000.
A large percentage of the money made from the deal will be used by Vodafone to invest in its business, with funds earmarked for high speed mobile phone networks.
The news comes at an important time for Vodafone as it prepares to launch a $9 billion investment plan dubbed Project Spring, which will accelerate the introduction of 4G networks and increase investment in laying fibre optic cables, among other things.
The investments would allow the company to offer much faster broadband services to customers, with Vodafone committing to its plan to bring complete 4G coverage to its five main European markets by 2017.
Project Spring will also add to Vodafone's high street stores and develop mobile payment services, while at the same time providing an opportunity for the company to invest further in developing markets.
