BT and Verizon strike agreement to combine international operations
BT Group PLC and Verizon Communications Inc on Monday announced plans to combine their international businesses in a 50:50 joint venture.
Under the deal, New York-based telecommunications company Verizon will pay London-based peer BT an equalisation payment of USD625 million.
The joint venture will serve over 3,000 customers across more than 180 countries, representing around USD4 billion in combined annual revenue.
"This breadth of operations will unlock significant scale efficiencies across the combined global network and service operations following completion," the two companies said in a statement.
The tie-up with Verizon will be incorporated in Jersey but headquartered and tax resident in the UK.
Martijn Blanken has been appointed chief executive officer-designate of the joint venture, conditional on the completion of the transaction which is expected in 2027.
Blanken has held senior leadership positions across telecommunications, technology and digital infrastructure at Telstra Group Ltd, Openwave Systems Inc, EXA Infrastructure UK Ltd and Koninklijke KPN NV. He will join BT in September and work with both companies ahead of the launch of the venture.
Clive Selley will continue to lead BT International as CEO. Verizon's leadership remains unchanged.
BT Chief Executive Allison Kirkby called the deal a "major milestone" for BT International, and an "important step" forward for BT as a whole, as "we deliver on our UK-focused strategy."
Shares in BT rose 1.2% to 197.35 pence each in London on Monday morning. Verizon closed up 1.0% to USD46.54 in New York on Friday.
Reflecting the joint venture, BT updated financial 2027 and mid-term guidance. The International division, including five non-core sales made during financial 2026, will be reported as a discontinued operation in its accounts until completion.
For financial 2027, and excluding the International business, BT expects adjusted group revenue between £17.1 billion and £17.6 billion, down from between £19.0 billion and £19.5 billion previously.
BT sees adjusted earnings before interest, tax, depreciation and amortisation between £8.1 billion and £8.2 billion, down from between £8.2 billion and £8.3 billion before.
Mid-term guidance for "sustained growth" for both metrics is unchanged.
Adjusted UK services revenue guidance is left unchanged for financial 2027 at between £15.1 billion to £15.4 billion.
In the financial year ended March 31, BT reported adjusted revenue of £19.65 billion, adjusted Ebitda of £8.23 billion and adjusted UK services revenue of £15.45 billion.
Copyright 2026 Alliance News Ltd. All Rights Reserved.