France Telecom and Deutsche Telekom Finalise JV Deal

The much-publicised merger between Orange and T-Mobile which has been in the news for a while now since its announcement in September this year have finally reached culmination. Parent companies have signed an agreement sealing the final deal this week.

Parent companies Deutsche Telekom and France Telecom have agreed to a 50:50 joint venture deal for the subsidiaries in the UK. The formalities have been completed and due diligence has been conducted for this deal. Once the necessary approvals are obtained from regulatory authorities, the deal will come into being. It is expected that this will take place early next year.

The new entity will have a whopping 37% of the broadband market share. In addition, it will also wield considerable purchasing power. Smaller players like Vodafone may be forced to look at next level markets to retain turnovers once the giant starts operating in the UK.

When asked about the deal, Timotheus Httges, CFO of Deutsche, expressed his happiness at the finalisation of talks. He hoped that the group would be able to provide even better services to customers with the added strength that the merger will provide. The deputy CEO of France Telecom echoed similar sentiments. He also reiterated the group’s commitment to providing high quality services to existing and new customers.

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