BT has reached an agreement to acquire broadband supplier TalkTalk, which was in administration, in a rescue deal expected to cost £400m. This acquisition is set to save 900 jobs.
The deal includes TalkTalk and its wholesale business, PlatformX Communications (PXC), acquired on a debt-free basis. BT anticipates a £400m cash impact in its current financial year from the deal, covering transaction and administration costs, working capital, a £60m trading loss, and £100m in uncollected Openreach revenue.
Lisa Nandy, the Secretary for Digital, Culture, Media and Sport, intervened following the acquisition's confirmation. Her department is acting under Enterprise Act powers to consider the wider public interest, with the Competition and Markets Authority expected to report on competition concerns by 19 October.
BT stated the deal will "protect continuity of service for its [TalkTalk's] 2.5 million customers, avoiding the risk of material harm to vulnerable customers and key emergency services." TalkTalk, the UK's fourth-biggest broadband company, has seen its retail customer numbers decrease from 4 million in 2019 to approximately 1.5 million this year.
The companies will continue to operate separately and compete until the regulatory review is concluded. BT is the UK's largest broadband provider, holding an estimated 30% market share.