U.K. CMA Clears BT's GBP12.5 Billion Acquisition of EE

By Ian Walker

LONDON--The U.K. Competition and Markets Authority said Friday it has cleared BT Group PLC (BT.A.LN)'s 12.5 billion pound ($18 billion) acquisition of EE Ltd. as it believes the deal won't result in a substantial lessening of competition.

The CMA said BT and EE operate largely in separate areas, with BT strong in supplying fixed communications services (voice, broadband and pay TV), EE strong in supplying mobile communications services, and limited overlap between them in both categories of service.

"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," John Wotton, Inquiry Chair, said.

BT said it welcomed the decision, adding that it paves the way for BT to complete the acquisition from Deutsche Telekom AG of Germany (DTEGY) and Orange SA of France (ORA.FR) in the coming weeks and to incorporate the business into the wider BT Group in the months to come.

"The combined BT and EE will be a digital champion for the U.K., providing high levels of investment and driving innovation in a highly competitive market," BT Chief Executive Gavin Patterson said.

BT said it will now start the formal process of completing the deal. A prospectus will be issued shortly and the deal set to close Jan. 29, when Deutsche Telekom and Orange will receive shares in BT.

After the completion of the deal, Deutsche Telekom will have 12% of BT shares and Orange will have 4%. A representative of Deutsche Telekom will be appointed to the BT Board in due course.

-Write to Ian Walker at [e-mail]; @IanWalk40289749

(END) Dow Jones Newswires

January 15, 2016 02:42 ET (07:42 GMT)

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