BT has today been given final approval by the Competition and Markets Authority (CMA) for their planned takeover of EE, with the buyout scheduled to complete on January 29th.
After a lengthy 10 month investigation by the competition watchdog to see if the deal will essentially create a monopoly and stifle competition, the green light has been given for the £12.5 billion buyout. With EE commanding almost a third of the mobile sector and BT having 30% of the broadband market according to Kantar analyst Imran Choudhary, the deal will create the biggest mobile, fixed line and broadband operator overnight, combining the resources of both companies into a telecom superpower.
Rivals have claimed that the deal will adversely harm the mobile sector, with some calling for Openreach to be separated from BT entirely. However, the CMA appeared to disagree, stating in its preliminary findings that the firms were dominant in two separate areas that do not represent much crossover. Also, let’s not forget the potential Three/O2 merger that is also on the horizon… Even if it is facing probes from Brussels for similar reasons.
Perhaps the market is just getting smaller, regardless of the network.
For more on EE, visit What Mobile’s dedicated EE page.