BT has agreed to buy rival broadband provider TalkTalk in a rescue deal that could bring an end to months of uncertainty for the operator.
The takeover still needs approval from the UK’s Competition and Markets Authority (CMA), but if it goes ahead, BT will take control of TalkTalk’s 1.5 million retail customers and one million wholesale customers across the UK.
BT chief executive Alison Kirkby described the deal as a “safety net” for the households and businesses that rely on TalkTalk, with the company promising customers access to BT’s network and its wider range of products and services.
The deal also gives some reassurance to TalkTalk employees and wholesale customers, including connections supporting critical services across healthcare, emergency services, defence, education, transport, banking and government.
TalkTalk has been struggling financially for some time. The company started out as a challenger to BT in the broadband market and was once listed on the London Stock Exchange, but it was taken private by private equity in 2021. Since then, it has built up debt while losing customers, eventually leaving it unable to pay some of its creditors.
That financial pressure is what has ultimately pushed TalkTalk towards the takeover, but the deal could create a headache for the CMA. BT is already the UK’s biggest broadband provider, and taking over a rival would give it even more control of the market.
For TalkTalk customers, the immediate message from BT is that the deal is intended to provide stability rather than disrupt their broadband service. But with the CMA yet to make its decision, BT’s takeover of one of its biggest rivals isn’t a done deal just yet.
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