Vodafone’s £84bn sale equivalent to QE dose

The agreement with Verizon Communications brings an end to one of the longest-running corporate stand-offs with the world’s third-largest deal.

Cash from the deal returned to UK shareholders is expected to provide what is effectively a fresh dose of quantitative easing to stimulate the economy – to add to the Bank of England’s £375bn programme of asset purchases.

Pension funds with investments in the widely-held stock also stand to benefit.

However, there is likely to be controversy over the way the deal is arranged amid reports that Vodafone’s tax liabilities will be minimised by completing the transaction through its Luxembourg subsidiaries and other offshore companies.

Margaret Hodge, chairwoman of the Commons Public Accounts Committee, said she wanted the deal to be examined in detail.

She said: “I just want some assurance that HM Revenue and Customs will be going through this deal with a tooth comb to ensure that the taxpayer gets the proper benefit under the law of the tax that Vodafone should pay on this massive windfall profit that they are making.”

Shareholders in Vodafone, one of Britain’s biggest companies, are predicted to receive a special dividend of up to £40bn.