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| Version 2 | Version 3 |
|---|---|
| T-Mobile UK and Orange to merge | T-Mobile UK and Orange to merge |
| (21 minutes later) | |
| T-Mobile UK and Orange are to merge - becoming the UK's biggest mobile phone firm with 28.4 million customers. | T-Mobile UK and Orange are to merge - becoming the UK's biggest mobile phone firm with 28.4 million customers. |
| The deal between Orange owner France Telecom and Deutsche Telekom's T-Mobile UK will create a business with sales of 9.4bn euros (£8.2bn; $13.5bn). | |
| The merged firm will have about 37% of the UK mobile market - overtaking the current market leader, Telefonica's O2. | The merged firm will have about 37% of the UK mobile market - overtaking the current market leader, Telefonica's O2. |
| It is the second large corporate deal in two days, after Kraft Food's £10.2bn takeover proposal for Cadbury. | It is the second large corporate deal in two days, after Kraft Food's £10.2bn takeover proposal for Cadbury. |
| 'Champion' | 'Champion' |
| T-Mobile is currently the fourth-largest mobile operator in the UK, with a 15% share of the market. O2 has a 27% share, followed by Vodafone (25%) and Orange (22%). | |
| The firms said in a joint statement that they hoped to create "a new mobile champion", adding that it was hoped the 50:50 joint venture could be signed by November. | The firms said in a joint statement that they hoped to create "a new mobile champion", adding that it was hoped the 50:50 joint venture could be signed by November. |
| Integrating the business will cost between £600m and £800m, the firms said. This bill would include decommissioning mobile phone masts, cutting back the network of stores and streamlining other operations. | Integrating the business will cost between £600m and £800m, the firms said. This bill would include decommissioning mobile phone masts, cutting back the network of stores and streamlining other operations. |
| DEAL IN NUMBERS 28.4m customers37% UK market share£8.2bn sales (in 2008) Source: Deutsche Telekom Return of the deal? | |
| Savings should reach about £445m a year by 2014, they added. | Savings should reach about £445m a year by 2014, they added. |
| Deutsche Telekom said earlier this year that it was considering its options for its UK business - which has struggled to win customers in the highly competitive market - which sees five operators and several smaller players compete. | |
| Observers say that a joint venture allows the German firm to avoid the write downs it could face if forced to sell T-Mobile UK for less than it hoped. | |
| Meanwhile, for France Telecom, the deal it is a way to strengthen its position in the UK market without paying cash or taking on vastly more debt. |