Bharti Global, the international investment arm of Bharti Enterprises, has announced the acquisition of a 24.5% stake in BT Group plc, making it the largest shareholder in the UK-based telecom giant. This acquisition comes from Altice UK and is valued at approximately $4 billion, subject to regulatory approvals, including security clearance.
Bharti Global, led by Sunil Bharti Mittal, the owner of Bharti Airtel, previously acquired a 9.9% stake in BT Group through a market deal. With this latest investment, Bharti now surpasses Deutsche Telekom’s 12% stake, solidifying its position as a significant player in the UK telecom market.
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Mittal emphasized that the investment is a long-term strategic move rather than a short-term financial play, stating that BT has a bright future ahead. He highlighted the synergies and opportunities the deal offers, particularly in areas like AI, 5G research and development, and core engineering. Mittal also noted that this investment strengthens India-UK business ties.
Despite the slower growth prospects in Europe and the UK, Mittal sees potential in BT’s large revenue base of $25 billion and $10 billion in EBITDA. He believes there is room for increased efficiency and free cash flow over time.
The acquisition is part of a broader trend of Indian companies acquiring well-known British brands, such as Jaguar Land Rover, Corus, and Tetley by Tata, as well as BSA by Mahindra Group and Hamleys by Reliance Brands.
Indian Commerce and Industry Minister Piyush Goyal praised the acquisition, calling it a testament to India’s growing strength as a global business leader. He thanked UK Prime Minister Keir Starmer and Foreign Secretary David Lammy for their support in strengthening business relations between India and the UK.
The transaction marks a shift in Mittal’s usual approach, as Bharti does not seek a board seat at BT, at least for now. However, Deutsche Telekom CEO Timotheus Höttges expressed optimism about working closely with Bharti for the benefit of BT shareholders and customers.
This deal represents Bharti’s first major investment in a developed market, having previously focused on markets in Africa, Bangladesh, Sri Lanka, and Seychelles, in addition to India.
