T-Mobile and Orange Merger Would Create UK’s Biggest Mobile Provider

Posted Sep 10, 2009

The U.K. operations of Deutsche Telekom subsidiary T-Mobile and Orange are planning to merge as long as government regulators approve of the plan.  If T-Mobile and Orange merge, then both companies combined will have 28.4 million customers combined and will be making about 9.4 billion Euros per year.

This would make the combined company the largest provider in the United Kingdom.  This would even beat Telefonica’s O2 subsidiary.  O2 has about 37% of the U.K. mobile phone market.  This is the second largest proposed deal that took place in the U.K. this week.  Kraft Foods offered £10.2 billion to take over chocolate company Cadbury’s earlier this week too.

Orange CEO Tom Alexander would become the head of the combined CEO.  T-Mobile UK head Richard Moat would become the COO of the combined company.  Combining the companies would cost roughly £800 million.  More details to follow as they come in.