BT agrees deal to buy mobile network EE for £12.5bn
BT has agreed terms to buy mobile phone network EE for a massive £12.5bn.
The deal, which will give BT access to EE’s 31m customers and the largest 4G network in Europe will be paid in a combination of cash and ordinary BT shares, issued to both Deutsche Telekom and Orange.
The transfer of shares will mean Deutsche Telekom owning 12 per cent of BT, and will be permitted to appoint one non-executive member of the BT board of directors. French company Orange will hold a four per cent stake.
BT is not just interested in the mobile customers: fusing the companies will give it access to EE’s 834,000 fixed broadband customers.
BT chief executive Gavin Patterson said:
This is a major milestone for BT as it will allow us to accelerate our mobility plans andincreaseour 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 servicesas well as fromincreased investment and innovation.