TalkTalk rescued out from collapse in enormous deal as message issued to 2.5m prospects
BT said it has agreed a deal to buy TalkTalk and its wholesale business PlatformX Communications out of administration to rescue the telecoms group from collapse
TalkTalk has been rescued by a rival (stock)(Image: SOPA Images/LightRocket via Getty Images)
A major UK broadband and telecoms provider has been rescued from collapse by a rival after 2.5 million customers could have faced uncertainty. BT Group has agreed a rescue deal to buy TalkTalk’s consumer and wholesale businesses out of administration in a move that will protect telecoms services for millions of households and vital public services.
The telecoms giant said it had stepped in to save TalkTalk and its PlatformX Communications (PXC) business from collapse in a “genuinely unprecedented situation” that could have impacted telecoms for 2.5 million customers.
BT said the deal will “protect continuity of service for its 2.5 million customers, avoiding the risk of material harm to vulnerable customers and key emergency services”.
BT has rescued the rival broadband operator from the brink of collapse (stock)(Image: Getty)
TalkTalk’s customers include vulnerable households, as well as connections that support critical national infrastructure providers across health, emergency services, defence, education, transport, banking and government.
Administrators at Alvarez & Marsal Europe said the sale will see all 900 employees at TalkTalk’s consumer and broadband business and PXC transfer to BT as part of the deal.
Lisa Nandy, Secretary of State for Digital, Culture, Media and Sport, said: “Phone and broadband services are vital national infrastructure. If TalkTalk services fail, there is a genuine risk to life and public services – including to hospitals, schools and emergency care.
“These are unprecedented circumstances that require action now. That is why I am acting with urgency to ensure that impacts on public health, critical national infrastructure and supply to vulnerable customers are fully considered as part of this process.”
TalkTalk and BT are two of the biggest broadband operators in the UK (stock)(Image: Getty Images)
The Public Interest Intervention Notice issued by the Government will allow it to consider the wider public interest of the deal once the Competition and Markets Authority (CMA) has reported back on any competition concerns.
TalkTalk’s customers do not need to take any action following this deal, the Government stressed.
Allison Kirkby, chief executive of BT Group, said: “This is a genuinely unprecedented situation, where millions of citizens and businesses were at risk if TalkTalk had collapsed.”
She added: “Our immediate priority is to stabilise the business and provide a safety net for the households and businesses who rely on TalkTalk.
“Once the regulatory process has been concluded, TalkTalk’s customers will benefit from access to the UK’s best network, and the full range of market-leading products and services that BT offers.
“And, over a period of time, the transaction will create value for all our stakeholders – customers, colleagues, the country, and our owners.”
