News Articles

Thursday, February 5, 2015

BT agrees to buy EE for £12.5 billion

UK telecoms group BT and mobile network operator EE have agreed a takeover deal. It comes less than two months after the companies entered into exclusive negotiations with each other.

Orange and Deutsche Telekom, which run EE as a joint venture, have chosen to receive different benefits from the sale of their shares. Orange will receive around £3.4 billion and a 4% stake in the combined BT/EE business. Deutsche Telekom will have a 12% stake in the new business and will be entitled to appoint a non-executive board member.

Image

After four years, BT expects the combined business to be saving approximately £360 million per year.

The deal is subject to shareholder and regulatory approval, with a conclusion expected by March next year.

Gavin Patterson, BT’s Chief Executive, said “This is a major milestone for BT as it will allow us to accelerate our mobility plans and increase our investment in them. The UK’s leading 4G network will now dovetail with the UK’s biggest fibre network, helping to create the leading converged communications provider in the UK. Consumers and businesses will benefit from new products and services as well as from increased investment and innovation. The deal provides an attractive opportunity for BT to generate considerable value for shareholders, with significant operating and capital investment efficiencies supported by our tried and tested cost transformation activities. The enlarged BT will offer significant opportunities for employees as we lead the creation of a world-class digital infrastructure for Britain.”

EE was formed in 2010, after T-Mobile and Orange were merged. The company has about 13,000 employees, 580 retail stores and is responsible for more than 30 million mobile and fixed-line customers.

Print
Author: The Fonecast
0 Comments
Rate this article:
No rating

Categories: Networks and operators, NewsNumber of views: 21412

Tags: uk orange bt deutsche telekom ee

Leave a comment

This form collects your name, email, IP address and content so that we can keep track of the comments placed on the website. For more info check our Privacy Policy and Terms Of Use where you will get more info on where, how and why we store your data.
Add comment

Follow thefonecast.com

Twitter @TheFonecast RSS podcast feed
Find us on Facebook Subscribe free via iTunes

Archive Calendar

«March 2024»
MonTueWedThuFriSatSun
26272829123
45678910
11121314151617
18192021222324
25262728293031
1234567

Archive

Terms Of Use | Privacy Statement