OFT approves BSkyB’s purchase of O2 UK’s fixed line unit

17 May 2013

UK competition watchdog the Office of Fair Trading (OFT) has confirmed that it has cleared the acquisition of the fixed line business of Telefonica’s UK subsidiary O2 by alternative fixed line voice and broadband provider BSkyB.

As previously reported by CommsUpdate, in March 2013 BSkyB agreed to acquire O2’s fixed operations for up to GBP200 million (USD303.4 million); under the deal BSkyB said it would pay GBP180 million to take over roughly 500,000 subscribers from its Spanish-backed rival, with a further payment of up to GBP20 million dependent on meeting certain milestones regarding migrating customers. Commenting on the acquisition at the time, BSkyB CEO Jeremy Darroch noted: ‘Sky has been the UK’s fastest-growing broadband and telephony provider since we entered the market six years ago. The acquisition of Telefonica UK’s [O2’s] consumer broadband and fixed-line telephony business will help us accelerate this growth.’

United Kingdom, O2 UK, Sky