Verizon set to buy out Vodafone in world's third biggest deal but UK taxman won't see a penny

American telecoms giant Verizon is set to take full control of its wireless business by reaching an agreement to buy Vodafone's 45 per cent stake.

In a short statement, Vodafone said today that talks to sell the company's stake in Verizon Wireless are at an "advanced" stage.

The deal will be worth $130 billion (£83 billion) in common stock and cash, the company added. The huge sum will be the third biggest business deal of all time.

Despite Vodafone being a British company, controversially, not a penny of tax on the historic sum will be paid in the UK, as the holding company for the firm's US group is registered in The Netherlands.

Vodafone's tax affairs have been heavily scrutinised in the past. In 2010, chancellor George Osborne reportedly let the company off of £6 million in unpaid tax.

More recently, it was revealed that the company has struck another deal with HMRC over tax avoidance using an Irish company, with the firm paying out an unknown amount this time.

Vodafone, the world's second largest mobile network by revenue, has paid no corporation tax in Britain for the last two years.

The deal with Verizon will signal the end of a ten year saga, during which time both companies have made attempts to take full control of the US wireless business, but have never been able to agree on a price before now.

Although an announcement confirming the deal is expected today - despite markets being closed for Labor Day in the US - Vodafone has told the BBC that an agreement is not completely certain.