T-Mobile to merge with Orange
8th September 2009
T-Mobile UK and Orange UK have agreed a joint merger that will create a combined customer base of 28.4 million.
The 50:50 joint venture will be responsible for 37 per cent of the UK's total mobile subscribers and has pro forma 2008 revenues of GBP 7.7 billion.
Customers also stand to benefit from the deal, which the owners of the two companies Deutsche Telekom and France Telecom expect will improve the quality of 2G and 3G network coverage.
Chief financial officer of France Telecom Gervais Pellissier explained that the deal is a 'long-awaited consolidation in one of Europe's most competitive markets'.
He said: 'This will reinforce fair competition and will provide strong benefits for our customers through improved coverage [and] quality of service.
'Our shareholders will benefit from higher profitability and an immediate cash flow per share accretion without impacting the overall indebtedness of the parent companies.'
It comes less than a month after the Orange France Telecom Group acquired the digital advertising network Unanimis.