BT share price: Company makes case for CMA clearance of EE deal
BT Group (LON:BT.A) has made its formal submission to the UK’s Competition and Markets Authority (CMA), for approval of its £12.5 billion deal to acquire EE Ltd, the telecoms giant announced today. BT is arguing that the acquisition will not reduce competition in either the fixed or mobile markets, but will in fact enhance it, given the group’s “history as a natural and willing wholesaler, enabling other companies to use the networks we own.”
The FTSE 100-listed company has also asked the CMA to proceed straight to the Phase 2 investigation of the proposed purchase. This is to allow the authority to efficiently consider any complex issues in depth without delay, offering a shorter end-to-end review period compared to the CMA’s usual processes.
The competition watchdog is expected to confirm in about three weeks whether or not it will move directly to a Phase 2. In the case of a regulatory approval, BT expects the deal to be completed by the end of March next year.
In separate news today, BBC reported that BT had been fined more than £100,000 for failures to deliver in a £260 million deal with Cornwall Council. The telecoms company took over back-office services such as information technology and human resources at the council in 2013. A report has revealed falling standards and only a tenth of the 351 jobs forecast have materialised. BT said it was working closely with the council to improve the situation.
By 14:15 BST, BT’s share price had declined 0.36 percent to 461.35p, erasing early morning gains. The stock has risen more than 15 percent since the beginning of the year.
As of 14:57 BST, Monday, 18 May, BT Group plc share price is 461.40p.