(The Guardian) BT Group has finalised a £12.5bn deal to buy EE, the UK’s largest mobile phone network, after weeks of negotiations.
Gavin Patterson, BT’s chief executive, said the deal was a “major milestone” for the former state-owned telecoms company, accelerating its foothold in the mobile market.
The combination of the two companies will cement BT’s status as the dominant force in UK telecoms, merging Britain’s most-advanced mobile 4G network with the company that owns and operates the UK’s biggest telecoms and broadband network.
Olaf Swantee, EE chief executive, said the deal was good news for Britain: “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.”
Under the terms of the deal, BT will pay EE owners Deutsche Telekom and Orange a combination of cash and shares. It will leave Deutsche Telekom - Germany’s partly state-owned telecoms company – with a 12% stake in BT, while Orange will hold a 4% stake.
The agreement also entitles Deutsche Telekom to appoint one non-executive member of BT’s board.
A spokeswoman for BT said it was “too early to speculate” on whether the deal would lead to job losses, but added that the company had a record of hiring people to support its investments.
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