Virgin Media and O2 to merge into £31,000,000,000 giant

The owners of Virgin Media and 02 have agreed to merge the two businesses together to form a company worth £31.4 billion.

Both firms claimed the move would speed up the rollout of faster broadband and 5G networks, if competition authorities allow it to go ahead. It would form the UK’s largest phone and internet provider which would pose a big threat to its competitors.

Details on the deal between O2 owner Telefonica and Virgin Media owner Liberty Global began hitting the news last week. Today the two parent companies have confirmed the merger.

When asked about potential regulatory hurdles that could scupper their plans, Liberty Global CEO Mike Fries said: ‘We don’t expect major challenges to this.

He said Britain’s departure from the European Union made no difference to the benefits or advantages of the merger and was a ‘major vote of confidence by both companies in the UK’.

Negotiations for the deal between Spanish-owned Telefonica and Liberty Global began in December.

More to follow.