BT (LON:BT.A) has been given the all-clear by the Britain’s competition watchdog to acquire mobile telecoms group EE.
A £12.5bn deal, agreed in February, to combine the fixed-line & broadband group and the mobile network operator can now advance.
The review by the Competition and Markets Authority (CMA) concluded that there was limited overlap between the two companies’ business categories.
“After a detailed investigation, our provisional view is that these concerns will not translate into a competition problem in practice,” said John Wotton, who chaired the inquiry.
Wotton said the CMA doesn’t believe that, in what it describes as a dynamic and evolving sector, the merged company would be able to use its position to damage competition or the interests of consumers.
“We provisionally think that the retail mobile market in the UK, with four main mobile providers and a substantial number of smaller operators, is competitive,” he added.
“By the same token, it is unlikely that the merger will have a significant effect on competition in the retail broadband market, where EE is only a minor player.”
Gavin Patterson, BT chief executive, in a statement, said: "We're pleased that the CMA has provisionally approved BT's acquisition of EE.
“The combined BT and EE will be good for the UK, providing investment and ensuring consumers and businesses can benefit from further innovation in a highly competitive market."