BT Group Plc and Verizon are collaborating in a $625 million deal to create a new international business through a joint venture. This strategic move marks a significant milestone in BT's strategy of refocusing its operations primarily on the UK domestic market. The joint venture aims to combine the international operational strengths of both telecommunications giants.
The international business, previously known as BT Global and currently carved out of BT Business, encompasses operations in several countries including Argentina, Brazil, and Canada. Through this new venture, BT will continue to provide corporate clients with essential network-related, cloud, and security services in these overseas markets.
This initiative aligns with Chief Executive Allison Kirkby's broader strategy to concentrate the $23.4 billion company's efforts on its core UK operations. This strategic redirection also involves the revival of the BT Mobile brand, alongside EE, which BT also owns. Such divestments and partnerships for international assets have been a trend for BT in recent years, with previous deals seen in markets like the US, Ireland, and Italy.
The announcement comes as BT had previously halted negotiations about a potential deal for its international operations almost a year ago. The renewed talks and subsequent joint venture with Verizon are expected to be advised by bankers from Lazard or Goldman Sachs, according to industry sources. Shares in BT were down 1.1% at 232.01p at 1300 BST following the news, with a similar decline of 1.2% to 231.70 pence noted earlier, despite the stock having risen nearly 40% over the past year.
