Tag Archives: Gavin Patterson

BT welcomes CMA’s approval of EE acquisition

BT welcomes CMA’s approval of EE acquisition

BT today welcomed the Competition and Markets Authority’s (CMA) decision to approve its acquisition of EE, unconditionally without remedies.

The CMA’s decision paves the way for BT to complete the acquisition of EE in the coming weeks and to incorporate the business into the wider BT Group in the months to come.

There will be a distinct EE line of business following completion of the acquisition. This will be led by Marc Allera who will become EE CEO following completion of the deal.

BT Chief Executive Gavin Patterson said: “It is great news that the CMA has approved our acquisition of EE. We are pleased they have found there to be no significant lessening of competition following an in-depth investigation lasting more than ten months.

“The combined BT and EE will be a digital champion for the UK, providing high levels of investment and driving innovation in a highly competitive market. I have no doubt that consumers, businesses and communities will benefit as we combine the power of fibre broadband with the convenience of leading edge mobile services. I look forward to welcoming EE into the BT family”.

Following today’s approval BT will commence the formal process of completing the deal. A prospectus will be issued in the week commencing January 25 with the deal set to close on January 29 when Deutsche Telekom and Orange will receive shares in BT. BT will report its Q3 2015/16 results on February 1.

Following completion of the deal Deutsche Telekom will have twelve per cent of BT shares and Orange will have four per cent. A representative of Deutsche Telekom will be appointed to the BT Board in due course.

About BT

BT’s purpose is to use the power of communications to make a better world. It is one of the world’s leading providers of communications services and solutions, serving customers in more than 170 countries. Its principal activities include the provision of networked IT services globally; local, national and international telecommunications services to its customers for use at home, at work and on the move; broadband, TV and internet products and services; and converged fixed/mobile products and services. BT consists principally of five customer-facing lines of business: BT Global Services, BT Business, BT Consumer, BT Wholesale and Openreach.

For the year ended 31 March 2015, BT Group’s reported revenue was £17,979m with reported profit before taxation of £2,645m.

British Telecommunications plc (BT) is a wholly-owned subsidiary of BT Group plc and encompasses virtually all businesses and assets of the BT Group. BT Group plc is listed on stock exchanges in London and New York.

For more information, visit www.btplc.com

BT to buy mobile firm EE for £12.5bn

EE shopEE will make BT into a leader in the 4G mobile market

Telecoms group BT has bought the mobile operator EE for £12.5bn.

The takeover creates a communications giant covering fixed-line phones, broadband, mobile and TV. Existing EE shareholders Orange and Deutsche Telekom will sell 100% of their shares.

Deutsche Telecom will hold 12% in the new combined business and have a seat on the board.

Orange will receive a 4% stake, as well as about £3.4bn in cash.

BT says it plans to raise £1bn through a placing of new shares to fund the deal.

“Start Quote

This is a major milestone for BT as it will allow us to accelerate our mobility plans and increase our investment in them”

End Quote Gavin Patterson BT chief executive

It said in a statement: “The combination of EE and BT will provide customers with innovative, seamless services that combine the power of fibre broadband with wi-fi and advanced mobile capabilities.”

Savings and revenues

EE leads the market in 4G, the fastest mobile bandwidth. It said on Thursday its 4G customer base had risen to 7.7 million subscribers.

EE chief executive Olaf Swantee said: “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 says that within four years, the deal will be saving it £360m a year in terms of operating costs and capital investment.

It added that by combining the two businesses, it should be able to generate an extra £1.6bn a year in sales.

BT Group

Last Updated at 05 Feb 2015, 10:47 *Chart shows local time BT Group intraday chart

price change %
442.60 p +



BT chief executive Gavin Patterson said: “This is a major milestone for BT as it will allow us to accelerate our mobility plans and increase our investment in them.”

He said the money being spent on the deal did not affect its plans ahead of the multi-billion pound Premier League rights auction, where it is in tough competition with rival Sky.

BT shares rose more than 2.5% on the London market, making the firm the top gainer on the FTSE 100 index.

crowd with phonesToo crowded – the UK telecoms industry looks set to consolidate


The mobile phone market is expected to consolidate further. Hutchison Whampoa, which owns rival Three, is said to be in talks to buy O2.

There has been speculation that Virgin may tie up with Vodafone.

And Sky has also announced the launch of its own mobile service, through a deal with O2’s network.

Dan Ridsdale, analyst at Edison Investment Research, said: “In the space of a few months, the UK telecoms landscape has changed enormously. As the majors fill in the gaps in their offerings, competition to offer multi-play bundles is going to step up significantly.

“Whether this will be beneficial for consumers is a very different question. The bundling of services makes it much more difficult to compare pricing, while more premium TV content is likely to move away from free to air.”

The BT-EE deal is expected to be finalised by March next year, subject to approval by shareholders of BT and scrutiny from the Competition and Markets Authority.

Source: BBC News