British Telecom and US telecommunications provider Verizon have announced plans to combine their international business units into a single joint venture valued at roughly £3 billion in annual turnover. The new entity will serve more than 3,000 multinational customers operating across 180 countries. Verizon will make an equalization payment of £473 million to BT to establish 50-50 ownership in the combined operation, which is expected to finalize in 2027.
The merger represents a strategic shift for BT, which has been systematically divesting international assets to concentrate resources on its core UK market. The company separated its international division into a standalone unit in July 2024, affecting approximately 8,000 employees. Previous divestitures include the sale of BT's Italian operations and its Irish wholesale and enterprise business, all part of a broader restructuring effort.
The joint venture will be legally incorporated in Jersey but will maintain operational headquarters and tax residency in the United Kingdom. Martijn Blanken, a former executive at Australian telecommunications firm Telstra, has been named chief executive designate and will join BT on September 1st. Until the transaction closes, Clive Selley will continue leading BT International as chief executive, while Verizon's leadership structure remains unchanged and both businesses operate independently.
Both parent companies are pursuing aggressive cost reduction strategies. BT recently announced plans to achieve £3.7 billion in cost savings over four years, a program that could eliminate up to 55,000 positions globally. Verizon similarly disclosed plans in November to cut more than 13,000 jobs across its operations. Neither company has yet revealed specific cost reduction targets for the merged international entity or confirmed the new venture's name.
BT Group chief executive Allison Kirkby described the deal as combining BT's expertise with Verizon's multinational client relationships. Verizon chief executive Dan Schulman stated that international customers require secure, flexible connectivity across borders and cloud environments, positioning the joint venture as the optimal solution for these requirements. The merger reflects broader consolidation trends in the telecommunications sector as carriers seek operational efficiencies while managing legacy international operations.
Source: https://www.independent.co.uk/news/business/bt-verizon-merge-international-uk-b3004780.html