DT, France Télécom ready to merge UK activities -
Pascale Paoli Lebailly
Deutsche Telekom and France Télécom have started talks on the possible merger of their UK subsidiaries and the creation of the first mobile phone operator on the UK market.
In a release published on Tuesday, the two operators said they would like to merge T-Mobile UK and Orange UK within a 50:50 joint-venture. With 28.4 million consumers, the new venture would hold 37% of the mobile phone UK market, passing current leader O2, credited with 27.7% marketshare, and Vodafone (24.7%).
Adding up the 2008 results, a maerged operator’s revenues would total €9.4 bn, with EBITDA of €2.1 bn.
The new company will be managed by Tom Alexander, Orange UK General Director.
The deal could be signed by the end of October.