Telecoms giant BT has bought Britain's leading mobile operator EE for £12.5 billion, following several weeks of negotiations.
BT's chief executive Gavin Patterson said the deal marked a "major milestone" for the previously state-owned company. He said the takeover would help make BT the "leading converged communications provider in the UK."
Subscribe to The Week
Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.
Sign up for The Week's Free Newsletters
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
EE has the UK's biggest, fastest and most developed 4G mobile network as well as the largest 4G customer base of any operator in Europe.
"Joining BT represents an exciting next stage for our company, customers, and people," its Chief Executive Olaf Swantee said in a statement. "Today's announcement will ensure the UK remains at the forefront of the mobile revolution, bringing even more innovation and investment in world leading connectivity for our customers."
BT will pay owners Orange and Deutsche Telekom with a combination of cash and shares. Deutche Telekom will have a 12 per cent stake in the new combined business and a seat on the board, while Orange will hold a 4 per cent stake, as well as £3.4bn in cash, the BBC reports.
A BT spokesperson told The Guardian that it was "too early to speculate" on whether the takeover would lead to job losses, but that the company had a record of hiring people to support new investments.
The deal will be scrutinised by both the Competition and Markets Authority and Ofcom. Subject to approval from the watchdogs and shareholders, it is expected to be finalised by March next year.
-
Labour shortages: the ‘most urgent problem’ facing the UK economy right nowSpeed Read Britain is currently in the grip of an ‘employment crisis’
-
Will the energy war hurt Europe more than Russia?Speed Read European Commission proposes a total ban on Russian oil
-
Will Elon Musk manage to take over Twitter?Speed Read The world’s richest man has launched a hostile takeover bid worth $43bn
-
BT: a game of fantasy M&A?Under the Radar There’s talk of a bid for BT from Reliance Industries. Is it a serious offer?
-
Shoppers urged not to buy into dodgy Black Friday dealsSpeed Read Consumer watchdog says better prices can be had on most of the so-called bargain offers
-
Ryanair: readying for departure from LondonSpeed Read Plans to delist Ryanair from the London Stock Exchange could spell ‘another blow’ to the ‘dwindling’ London market
-
Out of fashion: Asos ‘curse’ has struck againSpeed Read Share price tumbles following the departure of CEO Nick Beighton
-
Universal Music’s blockbuster listing: don’t stop me now…Speed Read Investors are betting heavily that the ‘boom in music streaming’, which has transformed Universal’s fortunes, ‘still has a long way to go’
