BT buys EE for £12.5 Billion

Posted on February 5, 2015 by admin

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BT is set to buy EE’s mobile phone business for £12.5 billion.

Telecoms group BT has reached an agreement to buy mobile phone provider EE from its parent companies, Orange and Deutche Telecom, for £12.5 Billion. 

The deal - which is still subject to approval by shareholders and the Competition and Markets Authority – will see Orange hold a 4% share in the new business, whilst receiving £3.4bn in cash.  Deutsche Telecom will hold a 12% stake in the new business.

BT has said the deal will enable it to save £360m per year in operating costs and capital investment, generating an extra £1.6bn a year in sales.

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."

BT shares rose 2.5% in response to the news, making the firm the top gainer on the FTSE 100 index.

 

 


This post was posted in Phone news