BT moves closer towards £12.5bn acquisition of EE

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BT has moved one step closer towards the acquisition of UK mobile network EE after it confirmed that it had started exclusive negotiations with current owners Deutsche Telekom and Orange.

The communications provider will – if the talks prove successful – purchase EE's full UK business and further extend the range of services it offers by taking it into the mobile market.

BT says this proposed deal will enable it to "accelerate its existing mobility strategy" and "combine the power of fibre broadband, wi-fi and 4G".

MORE: BT results boosted by TV and broadband demand

The period of exclusivity for the negotiations is due to last for "several weeks" in order to let BT carry out due diligence and finalise negotiations on a "definitive agreement" – with the deal set to cost £12.5bn.

In addition, Deutsche Telekom will take on a 12 per cent stake in BT and have the chance to name one board member. Orange will take on a 4 per cent stake in BT.

BT says it will look to "generate revenue synergies" through the sale of its fixed-line services to the current EE customers who don't currently use any services from BT.

MORE: EE makes 4G mobile broadband available in more parts of the UK

Pete Hayman

Pete was content editor on What Hi-Fi?, overseeing production and publication of digital content. In creating and curating feature articles for web and print consumption, he provided digital and editorial expertise and support to help reposition What Hi-Fi? as a ‘digital-first’ title; reflecting the contemporary media trends. He is now a senior content strategist.