BT and Verizon merge international operations in new global business worth billions

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BT has struck a significant deal with US mobile phone giant Verizon to merge their international operations, creating a new joint venture with an estimated annual turnover of around £3 billion.

Under the terms of the agreement, Verizon will make an equalisation payment of £473 million to BT, with both companies holding equal shares in the combined entity. This new venture is set to serve over 3,000 customers across more than 180 countries worldwide.

The move aligns with BT’s long-standing strategy to divest its international business and sharpen its focus on the domestic UK market. The telecoms firm had already carved out its international division, which employs approximately 8,000 people, as a standalone unit last July.

This follows a series of overseas asset reductions, including the sale of its Italian business and its Irish wholesale and enterprise unit, as part of broader cost-cutting initiatives.

The deal sees Verizon will pay £473 million to BT (Getty/iStock)

BT recently announced plans to increase group-wide cost savings to £3.7 billion over the next four years, potentially leading to 55,000 job losses globally. Verizon has also been pursuing cost reductions, revealing plans in November to cut over 13,000 jobs across its operations.

Allison Kirkby, chief executive of BT Group, hailed the announcement as “a major milestone for BT International, and an important step forward for BT as a whole, as we deliver on our UK-focused strategy.” She added that the collaboration would combine BT’s “expertise and heritage with Verizon’s deep relationships with multinationals.”

Dan Schulman, chief executive of Verizon, commented: “Our international customers require secure, flexible connectivity that works seamlessly across borders and cloud environments. When we thought about how to best support them, this joint venture was the clear answer.”

The joint venture will be incorporated in Jersey but will maintain its headquarters and tax residency in the UK. Martijn Blanken, formerly an executive at Australian telecoms firm Telstra, has been appointed chief executive designate and is expected to join BT on 1 September, ahead of the deal’s anticipated completion in 2027.

Clive Selley will continue to lead BT International as chief executive until the transaction is finalised, while Verizon’s leadership will remain unchanged, with both businesses operating independently in the interim. The companies have not yet disclosed potential cost reductions post-merger, nor has the name of the new entity been confirmed.

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