Liberty Global scraps $876 million deal to take over Poland's Multimedia

WARSAW (Reuters) - U.S. television and broadband company Liberty Global LBTYA.O has scrapped a $876 million preliminary deal to buy Polish peer Multimedia Polska, the companies said on Friday.

The preliminary takeover deal was first announced in October 2016. Liberty’s Polish unit UPC Polska was to buy Multimedia’s cable television business for about 3 billion zlotys ($876 million) in cash.

The final price was to be subject to potential downward adjustments for the operational and financial performance of Multimedia prior to closing.

“We have withdrawn from the transaction to acquire Multimedia Polska after failing to agree on revised commercial terms with the sellers that take into account current regulatory and market conditions,” Liberty Global said in a statement.

“We remain confident in the business prospects of our Polish operation and will consider other accretive consolidation opportunities as and when they arise,” the company said.

Liberty Global hoped to significantly increase its scale in Poland, where it is already one of the largest cable operators.

“Due to the lack of possibility to make final trade and business arrangements, the parties have unanimously decided to terminate the agreement,” Multimedia Polska said in a separate statement.

Reporting by Marcin Goettig; Editing by Robin Pomeroy