BT agrees rescue deal to save TalkTalk from administration

BT Group has agreed a rescue deal to buy TalkTalk’s consumer and wholesale businesses out of administration in a move protecting around 900 jobs and telecoms supply to millions of customers 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”.

It comes after the Government said it took urgent action to intervene and pave the way for a sale to BT after TalkTalk’s attempts to find a buyer for its two businesses had failed.

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”.

TalkTalk has 2.5 million customers (PA)

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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.”

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.”