BT agrees rescue takeover of broadband provider TalkTalk
The takeover of the broadband provider still needs approval from regulators before it can go ahead.
AI illustrationBT has agreed a deal to rescue the broadband provider TalkTalk, in a takeover that still needs approval from regulators.
Under the deal, TalkTalk's wholesale and consumer businesses will reportedly pass to BT for £400m on a debt-free basis, saving 900 jobs.
It was reported that the takeover would give certainty to TalkTalk's customers, who reportedly number 1.5 million.
The UK telecoms regulator Ofcom has reportedly welcomed the deal. Its chief executive, Dame Melanie Dawes, was reported to have said that after a long spell of uncertainty about TalkTalk Group's future, the regulator welcomed the prospect of a commercial outcome that shields customers and keeps essential communications services going.
Ofcom reportedly said the transaction now requires the appropriate clearances and that it would work closely with the Competition and Markets Authority and the government during that review. The regulator reportedly added that existing regulatory obligations still apply and that it had written to BT to set out its expectations.
BT has reportedly said that TalkTalk will keep running as a separate business while regulators examine the deal. Broadband and landline services for TalkTalk customers reportedly continue as normal for now.