- In a landmark deal that reshapes the telecommunications landscape, Bharti Enterprises, the Indian tech and telecoms giant behind Airtel, has announced its intention to acquire a 24.5% stake in BT, the U.K.’s former incumbent telecoms carrier.
- The deal, valued at approximately $4 billion, sees Bharti purchasing the stake currently held by Altice, marking a significant move by the Indian conglomerate to strengthen its international presence and diversify its portfolio.
- The acquisition comes at a time when the telecommunications industry is grappling with rapid technological advancements and shifting market dynamics.
As carriers around the world seek to adapt to the rise of 5G and artificial intelligence (AI), Bharti’s investment in BT is seen as a strategic move to gain a stronger foothold in these emerging technologies.
In a statement, Bharti Enterprises emphasized the potential for collaboration between the two companies in areas such as AI and 5G research and development, as well as core engineering. The company believes that this investment will not only create new synergies in the telecom sector but also offer opportunities to collaborate on industry best practices and emerging technologies.
For Bharti, the deal represents an opportunity to diversify its business beyond its fiercely competitive home market in India, where it competes with Reliance’s Jio in what many consider a duopoly. By investing abroad, Bharti aims to reduce its reliance on the Indian market and tap into new growth opportunities.
Interestingly, the deal also marks a reversal of roles for BT, which once held a 21% stake in Bharti between 1997 and 2001. The acquisition of a significant stake in BT by Bharti is seen as a testament to the enduring relationship between the two companies and their shared vision for the future of the telecommunications industry.
“Bharti and British Telecom (BT) have an enduring relationship going back more than two decades,” said Sunil Bharti Mittal, founder and chairman of Bharti Enterprises. “Today marks a significant milestone in Bharti Group’s history as we invest in BT — an iconic British Company.”
The deal comes at a challenging time for Altice, which has faced financial pressures due to debt-led acquisitions and corporate scandals. The sale of its stake in BT follows the recent divestment of media platform Teads to web recommendation platform Outbrain for approximately $1 billion.
For BT, the acquisition of a major stake by Bharti is seen as a vote of confidence in the company’s long-term value and strategy. “We welcome investors who recognize the long-term value of our business, and this scale of investment from Bharti Global is a great vote of confidence in the future of BT Group and our strategy,” said Allison Kirkby, BT’s CTO.
As the telecommunications industry continues to evolve, the Bharti-BT deal highlights the growing importance of strategic partnerships and investments in driving innovation and growth. With the combined expertise and resources of Bharti and BT, the two companies are well-positioned to navigate the challenges and opportunities presented by the rapidly changing telecommunications landscape.
