BT has confirmed they want to buy EE for £12.5bn, a move that will bring them back into the mainstream mobile consumer market.
This decision comes after weeks where both O2 and EE competed for sale to BT.
The proposed deal will provide BT with the extensive 4G coverage and mobile customer base of EE. This would represent a marked return to the mainstream mobile consumer market for BT and would allow them to offer their customers packages of TV, home broadband and mobile telecoms.
BT has said, ‘The proposed acquisition would enable BT to accelerate its existing mobility strategy whereby customers will benefit from innovative, seamless services that combine the power of fibre broadband, wi-fi and 4G’.
An estimated 25m mobile customer of EE, many of whom still use the Orange and T-Mobile brands, would be brought into BT’s existing consumer business. EE is also the largest 4G operator in Europe and about 6m customers using its superfast service stand to be acquired. BT believes owning the UKs most advanced 4G network will support greater control of future investment and product innovation.
Through this deal, BT will obtain EE’s large chain of high street stores to sell its packages of telecoms and TV entertainment.
Following the acquisition, Orange and T-Mobile would hold a 12% and 4% stake in BT, respectively.
The exclusivity agreement will last for several weeks allowing BT to complete its due diligence and for definitive terms to be reached. The current agreement does not bind BT to purchase EE and any acquisition requires consent of BT’s shareholders.
DTG Staff | 17.12.2014