BT has completed its move for mobile operator EE after agreeing a price of £12.5bn comprising a mixture of cash and shares.
The deal promises to supercharge an increasingly aggressive BT, giving it control of a wide spectrum of telecoms provision from landlines, mobile and broadband to TV.
Under the terms of the takeover existing EE shareholders Orange and Deutsche Telecom will sell their entire holdings although both will retain influence through a stake in the combined business, set at 4 per cent and 12 per cent respectively.
For BT the takeover promises to deliver longer term advantages, principally by reducing its operating costs and capital investment requirements, factors it believes could end up saving it £360m per year.
Its calculations also suggest that the tie-up will generate an additional £1.6bn per year in sales, particularly in the 4G arena where EE is market leader.
In a prepared statement BT said: “The combination of EE and BT will provide customers with innovative, seamless services that combine the power of fibre broadband with wi-fi and advanced mobile capabilities.”