BT's plan to buy EE -- the UK's largest mobile phone network -- for £12.5bn has been provisionally approved by the UK's competition watchdog. "It is unlikely that the merger will have a significant effect on competition," said John Wotton, chair of the Competitions and Mergers Committee inquiry. It concluded that BTEE would not "be able to use its position to damage competition or the interests of consumers."
The deal, agreed in February, could create a communications giant combining broadband, home phone, TV, and the UK's largest mobile phone network. Once completed, the acquisition could enable BT to sell "quad play" packages that include mobile, TV, broadband and home phone.
The inquiry ruled that there was little overlap between the business of the two companies, and that it would not severely damage competition. BT is the leading broadband provider in the UK and EE the largest mobile company.
EE has around 24.5 million customers and 7.7 million signed up to its 4G network. The combined companies will generate an extra £1.6bn a year in sales for BT, and allow for £360m in operating costs, BT claimed. "The combined BT and EE will be good for the UK, providing investment and ensuring consumers and businesses can benefit from further innovation in a highly competitive market," said Gavin Patterson, BT's chief executive. BT shareholders approved the acquisition in a near-unanimous vote in May.
The provisional approval doesn't guarantee that the deal will close -- the committee's final approval will be published on 18 January, with the deal expected to be finalised by March 2016.
This article was originally published by WIRED UK
