UK clears a $44 billion Virgin and O2 to challenge BT
May 20, 2021, 5:42 pm

UK clears a $44 billion Virgin and O2 to challenge BT

By Paul Sandle, Clara-laeila Laudette

Britain's competition regulator cleared a $44 billion merger between broadband company Virgin Media and Telefonica's (TEF.MC) UK mobile network O2 on Thursday, after a months-long review.

Virgin owner Liberty Global (LBTYA.O) and Spain's Telefonica, who agreed a year ago to forge a broadband and mobile powerhouse to challenge market leader BT (BT.L), hailed the decision as "a watershed moment in the history of telecommunications in the UK".

"We are reassured that competition amongst mobile communications providers will remain strong and it is therefore unlikely that the merger would lead to higher prices or lower quality services," Martin Coleman of Britain's Competition and Markets Authority (CMA) said.

The companies said the deal, which values O2 at 12.7 billion pounds and Virgin Media at 18.7 billion pounds to give the new group a combined value of 31.4 billion pounds ($44.4 billion) including debt, is expected to close by June 1.

"We are now cleared to bring real choice where it hasn't existed before, while investing in fibre and 5G that the UK needs to thrive," Liberty Global CEO Mike Fries and his Telefonica counterpart José Maria Alvarez-Pallete said in a joint statement following the CMA approval.

The 50:50 joint venture, which will be led by Virgin Media boss Lutz Schüler, will have 11 billion pounds of annual revenue, the two owners said.

"For Telefonica, that's a big deal done," one financial source told Reuters. "They're buying Oi in Brazil and need to finalise that, but this would mean consolidating major presence in the UK, Germany, Brazil and Spain."

The CMA had been concerned about the possible impact of the merger on the British mobile market given that both companies sold wholesale services to other operators.

However it gave the deal provisional approval last month after concluding that other players offering rival services, such as BT and Vodafone, would maintain competition.

Telefonica has been selling assets to cut debt, which stood at 35.8 billion euros in this year's first quarter, and also fund an upgrade to next-generation 5G networks while, like European rivals, it tackles competition and the COVID-19 crisis.

Source: Reuters

London Stock Exchange Group is in talks with Thomas Reuters following dispute due to news website paywall Prince William receives his first shot of coronavirus vaccine

BENEFIT, the Kingdom’s innovator and leading company in Fintech and electronic financial transactions service, has sponsored the BuildHer CityHack 2025 Hackathon, a two-day event spearheaded by the College of Engineering and Technology at the Royal University for Women (RUW).
Aimed at secondary school students, the event brought together a distinguished group of academic professionals and technology experts to mentor and inspire young participants.
More than 100 high school students from across the Kingdom of Bahrain took part in the hackathon, which featured an intensive programme of training workshops and hands-on sessions. These activities were tailored to enhance participants’ critical thinking, collaborative problem-solving, and team-building capabilities, while also encouraging the development of practical and sustainable solutions to contemporary challenges using modern technological tools.
BENEFIT’s Chief Executive Mr. Abdulwahed AlJanahi, commented: “Our support for this educational hackathon reflects our long-term strategic vision to nurture the talents of emerging national youth and empower the next generation of accomplished female leaders in technology. By fostering creativity and innovation, we aim to contribute meaningfully to Bahrain’s comprehensive development goals and align with the aspirations outlined in the Kingdom’s Vision 2030—an ambition in which BENEFIT plays a central role.”
Professor Riyadh Yousif Hamzah, President of the Royal University for Women, commented: “This initiative reflects our commitment to advancing women in STEM fields. We're cultivating a generation of creative, solution-driven female leaders who will drive national development. Our partnership with BENEFIT exemplifies the powerful synergy between academia and private sector in supporting educational innovation.”
Hanan Abdulla Hasan, Senior Manager, PR & Communication at BENEFIT, said: “We are honoured to collaborate with RUW in supporting this remarkable technology-focused event. It highlights our commitment to social responsibility, and our ongoing efforts to enhance the digital and innovation capabilities of young Bahraini women and foster their ability to harness technological tools in the service of a smarter, more sustainable future.”
For his part, Dr. Humam ElAgha, Acting Dean of the College of Engineering and Technology at the University, said: “BuildHer CityHack 2025 embodies our hands-on approach to education. By tackling real-world problems through creative thinking and sustainable solutions, we're preparing women to thrive in the knowledge economy – a cornerstone of the University's vision.”