T-Mobile UK and Orange have announced they have entered into exclusive negotiations to merge their UK operations, becoming the country's largest mobile carrier.
The combined company will have a turnover of around £7.7 billion, 28 million customers and around 37 percent of the market.
In a joint statement, parent companies Deutsche Telekom and France Telecom said they expected the deal to create the 50:50 joint venture to be signed by November.
It is expected Orange and T-Mobile will continue to be run as separate businesses with both brands retained.
Initial savings were reported as between £600 - £800 million, thanks to the rationalisation of infrastructure, shops and other operations.
Total savings could be as much as £3.5 billion.
To create the new joint venture, Deutsche Telekom will contribute T-Mobile UK on a cash-free, debt-free basis, including T-Mobile UK's 50 percent holding in its 3G network joint venture with Hutchison, and gross tax losses carried forward of at least £1.5 billion.
France Telecom will contribute the whole of Orange UK including £1.25 billion of intra-group net debt to equalise the value of the contributions.
After completing the deal, Deutsche Telekom will grant a £625 million shareholder loan to the joint venture, which will be used to simultaneously reimburse £625 million to France Telecom.
As a result, the joint venture would have indebtedness of £1.25 billion, represented by two shareholder loans of £625 million held by each of Deutsche Telekom and France Telecom.
News
Contributing Editor
A Pocket Gamer co-founder, Jon is Contributing Editor at PG.biz which means he acts like a slightly confused uncle who's forgotten where he's left his glasses. As well as letters and cameras, he likes imaginary numbers and legumes.
Related Articles
Top Stories
Feature
3 hours, 56 minutes ago
Mobile Mavens: What do developers think of the Epic Games Store coming to mobile?
Feature
Mar 25th, 2024
5 takeaways from GDC 2024: The games industry reckons with key challenges, Godot competes with Unity, and AI was the big trend without the big announcements
Events
Mobidictum Network Lisbon April 2024 | Europe | Apr 16th |
HIT Games Conference Istanbul 2024 | Apr 18th | |
App Promotion Summit London | Europe | Apr 25th |
Dubai GameExpo Summit 2024 | Middle East | May 1st |
Mobidictum Meetup Berlin May 2024 | Europe | May 7th |
Mobidictum Meetup Tallinn May 2024 | Europe | May 21st |
Israel Mobile Summit 2024 | Middle East | Jun 6th |
Mobidictum Meetup Barcelona September 2024 | Europe | Sep 1st |
Popular Stories
Feature
Mar 25th, 2024