BT Group and Verizon are creating a new international business in a $625 million transaction. This move comes as BT is reportedly reviving discussions about a sale or partnership for its international operations, which focus on providing network, cloud, and security services to corporate clients in countries like Argentina, Brazil, and Canada. This divestment aligns with BT CEO Allison Kirkby's strategy to re-prioritize operations within the United Kingdom.
BT had previously halted negotiations around a deal for its international business, formerly known as BT Global. However, it is now re-engaging with companies such as AT&T, Orange, and Verizon. Industry sources suggest that Lazard or Goldman Sachs are expected to advise BT on these renewed talks. The timing sees BT shares down 1.1% to 232.01p as of 1300 BST on the day of the announcement.
This joint venture is a key part of BT's broader strategy to refocus on its domestic UK market, where it has faced competition and lost customers to smaller rivals. Similarly, Verizon aims to improve returns from its current infrastructure, especially under the new leadership of CEO Dan. Both companies seek to optimize resources and streamline operations by concentrating on their core home markets, echoing past divestments by BT in the US, Ireland, and Italy.
The international unit, now carved out of BT's BT Business division, is currently led by Clive Selley, who previously headed Openreach. The discussions follow previous attempts at partnership talks with AT&T and Orange, and come over a year after BT announced plans to establish a separate international unit. This strategy also involves a revival of the BT Mobile brand alongside EE, which the company also owns.
