The Competition and Markets Authority has given its approval to the merger of BT and EE.
The £12.5 billion (€16.45bn) acquisition brings together the UK’s largest fixed telecoms business and the UK’s largest mobile telecoms business. It signals the return of BT to the mobile market while EE’s former owners Orange and Deutsche Telekom prepare to exit the sector.
“Since our provisional findings, we have taken extra time to consider responses in detail but the evidence does not show that this merger is likely to cause significant harm to competition or the interests of consumers,” said John Wotton, Inquiry Chair. “The retail mobile services market in the UK is competitive, with four main mobile providers and a substantial number of smaller operators. As BT is a smaller operator in mobile, it is unlikely that the merger will have a significant effect. Similarly, EE is only a minor player in retail broadband, so again it is unlikely that the merger will have a significant effect in this market.”
No conditions have been attached to the merger.
BT said that EE would become a distinct line of business, led by Marc Allera who will become EE CEO following completion of the deal. “The combined BT and EE will be a digital champion for the UK, providing high levels of investment and driving innovation in a highly competitive market. I have no doubt that consumers, businesses and communities will benefit as we combine the power of fibre broadband with the convenience of leading-edge mobile services. I look forward to welcoming EE into the BT family,” commented BT Chief Executive Gavin Patterson.
The Deutsche Telekom-Orange JV is the biggest mobile telephony company in the UK. It currently holds 31 million customers including 24.5 direct mobile customers and 834,000 fixed broadband customers.
