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BT to buy mobile firm EE for £12.5bn | BT to buy mobile firm EE for £12.5bn |
(36 minutes later) | |
Telecoms group BT has bought the mobile operator EE for £12.5bn. | Telecoms group BT has bought the mobile operator EE for £12.5bn. |
The takeover creates a communications giant covering fixed-line phones, broadband, mobile and TV. Existing EE shareholders Orange and Deutsche Telekom will sell 100% of their shares. | The takeover creates a communications giant covering fixed-line phones, broadband, mobile and TV. Existing EE shareholders Orange and Deutsche Telekom will sell 100% of their shares. |
Deutsche Telecom will hold 12% in the new combined business and have a seat on the board. | |
Orange will receive a 4% stake, as well as about £3.4bn in cash. | |
BT says it plans to raise £1bn through a placing of new shares to fund the deal. | BT says it plans to raise £1bn through a placing of new shares to fund the deal. |
It said in a statement: "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. | |
Savings and revenues | |
EE leads the market in 4G, the fastest mobile bandwidth. It said on Thursday said its 4G customer base had risen to 7.7 million subscribers. | |
BT says that within four years, the deal will be saving it £360m a year in terms of operating costs and capital investment. | |
It added that by combining the two businesses, it should be able to generate an extra £1.6bn a year in sales. | |
The deal is expected to be finalised by March next year, subject to approval by shareholders of BT and scrutiny from the Competition and Markets Authority. |