BT finalises deal to buy EE
BT has agreed to purchase EE for £12.5bn in a deal consisting of both shares and cash.
BT announced at the end of last year that negotiations were in place to purchase the mobile phone operator, with the result being the creation of the largest communications provider in the UK. The current owners of EE, Deutsche Telekom and Orange, will each hold a stake in BT.
The chief executive of BT, Gavin Patterson, said that this is a “major milestone” for the company, as plans for mobile telecommunications can now be accelerated. EE, which is the leading 4G network in the UK, can now be merged with the biggest fibre network in the country.
The deal needs to be approved by both shareholders and the UK’s Competition and Markets Authority and it is expected that the purchase would be completed by the end of March next year. BT is planning to offer a full range of services to both its own customer base and the customer base of EE, including pay TV, broadband and fixed phone lines to EE customers who do not already use these services.
EE currently has almost 25 million mobile phone customers and its chief executive, Olaf Swantee, says that over the last few years the company has worked hard to build its 4G network. He has described the deal with BT as one that will ensure that the UK continues to lead the world in mobile phone services.