BT has bought TalkTalk's consumer business and its wholesale arm, PlatformX, out of administration. It takes on no debt, and expects the total cash cost this financial year to be around £400mn.
The deal adds 1.5mn retail customers and 1mn wholesale customers. TalkTalk made revenue of around £1.2bn over the last 12 months but lost money. BT expects the deal to add value over time as the business is stabilised and cost savings come through.
Regulators are expected to review the deal over the coming weeks. Until then, BT and TalkTalk will run separately and keep competing. Leaving the deal aside, BT reconfirmed all of its full-year and longer-term guidance.
The shares rose 1.7% in early trading.
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