There have been a number of rumors that BT were looking to buy one of the UK’s mobile carriers and now the company has confirmed that it will purchase EE.
EE which was a partnership between Orange and T-Mobile in the UK is the largest 4G LTE carrier in the UK, and British Telecom will acquire the company for £12.5 billion.
The £12.5 billion will be paid to Orange and Deutsche Telekom (T-Mobile) in cash and new BT ordinary shares.
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. The UK’s leading 4G network will now dovetail with the UK’s biggest fibre network, helping to create the leading converged communications provider in the UK. Consumers and businesses will benefit from new products and services as well as from increased investment and innovation. The deal provides an attractive opportunity for BT to generate considerable value for shareholders, with significant operating and capital investment efficiencies supported by our tried and tested cost transformation activities. The enlarged BT will offer significant opportunities for employees as we lead the creation of a world-class digital infrastructure for Britain.”
As yet there are no details on when the deal will be completed, as we presume it will need to be approved by the regulators before things are finalized.