BT AND VERIZON MERGE INTERNATIONAL BUSINESSES IN £3BN JOINT VENTURE

BT and Verizon have agreed to establish a joint venture combining their international operations, valued at approximately £3 billion in annual sales. Under the terms of the agreement, Verizon will make an equalisation payment of £473 million to BT, with both companies holding equal shareholdings in the combined entity. The joint venture will serve more than 3,000 customers across more than 180 countries. BT described the arrangement as a "milestone" in its strategic refocus.

The combined business will operate under new leadership, with Martijn Blanken, formerly of Australian telecoms firm Telstra, named chief executive designate. Blanken is scheduled to join BT on 1 September in advance of the transaction's completion, which the companies expect in 2027. BT has pursued the separation of its international operations for some time as part of efforts to concentrate on the UK domestic market. The move saw BT's share price rise to the top of the FTSE 100 index.

The joint venture will target multinational corporate customers seeking telecommunications services across multiple territories. The transaction represents a significant restructuring of BT's portfolio and reflects the company's strategic shift towards domestic operations. Both companies anticipate completing regulatory and other approvals required for the deal throughout 2026 and into 2027. The arrangement allows BT to pursue its domestic market strategy whilst maintaining international revenue through its stake in the joint venture.