Mobile operator O2 and broadband huge Virgin Media are to merge, creating 1 of the country’s biggest amusement and telecoms firms.
Liberty World wide, which owns Virgin Media, and Spain’s Telefonica, which owns O2, mentioned they experienced agreed conditions for becoming a member of forces.
O2 is the UK’s premier cell phone business with around 34 million users.
Virgin has about six million broadband and cable Tv set consumers and yet another three million cell users.
As well as having its very own subscribers, O2 delivers the network for Tesco Cell, Giffgaff and Sky Cellular,
The companies stated O2 would be valued at £12.7bn and Virgin Media at £18.7bn, both equally on a total company worth basis.
“O2 [is] to be transferred into the joint venture on a debt-free of charge foundation, although Virgin Media to be contributed with £11.3bn of internet credit card debt and personal debt-like things,” the corporations mentioned in a joint assertion.
The tie-up will create a key rival to BT.
Telefonica tried using to sell O2 to the operator of 3, CK Hutchison, for £10.3bn in 2015. However, that deal was blocked by the European Commission in excess of problems that it would have still left just 3 major cellular cellphone operators in the British isles.