The UK's Competition and Markets Authority (CMA) has given unconditional approval to BT's acquisition of EE from Orange and Deutsche Telekom. The GBP 12.5 billion acquisition brings together the UK’s largest broadband and fixed operator with the country's biggest mobile operator.
Following a nine-month investigation of the deal, the CMA said it did not expect the takeover to result in a substantial lessening of competition in any markets, including the supply of retail mobile, wholesale mobile, mobile backhaul, wholesale broadband and retail broadband services. As BT is a small player in mobile, little impact is expected in the retail market.
However, competitors were concerned about the effects on the wholesale market, given BT's significant role as wholesale broadband supplier and backhaul provider, and EE's provision of MVNOs. The CMA concluded that the combined BT/EE "would not have both the ability and the incentive to disadvantage competitors such that there would be significant harm to competition". Wider concerns about the sector, such as BT's wholesale arm Openreach and the role of Ofcom, will be dealt with Ofcom's ongoing sector review, the CMA noted.
BT said it expects to close the acquisition by 29 January and confirmed that Marc Allera will take over as CEO of the new unit. In return for their 50 percent stakes in EE, Deutsche Telekom will receive a 12 percent stake in BT and a seat on the company's board, and Orange will receive shares worth a 4 percent stake in BT and GBP 3.4 billion in cash.
Source: http://www.telecompaper.com/news/bt-wins-final-clearance-to-acquire-ee--1123032