BT Group has struck a landmark $4 billion joint venture agreement with US telecoms giant Verizon, marking one of the most significant cross-Atlantic deals in the sector this year.
The partnership will see the two companies pool their international assets, creating a combined entity expected to generate roughly $4 billion in annual revenue.
The new venture is set to serve more than 3,000 customers across more than 180 countries, positioning it as a major force in global enterprise connectivity.
Both parent companies will hold equal voting rights in the joint venture, with Verizon agreeing to pay BT a $625 million equalisation payment as part of the arrangement.
The venture is being pitched as a platform built for a cloud-first world, with both sides emphasising secure and resilient connectivity designed to meet customers’ data, operational and regulatory requirements.
While the entity will be incorporated in Jersey, it will be headquartered and tax resident in the United Kingdom, a detail likely to be welcomed by British policymakers.
The BT-Verizon deal provided the main talking point of an otherwise subdued session, with the FTSE 100 making a slow start, falling 13 points to 10,495.42 in early trading.
Brent crude edged higher by 0.8% to $73.19 after skirmishes between Iran and the US over the weekend prompted a modest spike in oil prices, though the price remains close to pre-conflict levels.
Tensions between Washington and Tehran escalated over the weekend, with Iran launching fresh drone and missile attacks on Bahrain and Kuwait in response to new US airstrikes.
US equity futures pointed higher despite the geopolitical turbulence, with the S&P 500 and Nasdaq 100 both up around 0.6%, while European futures also suggested a modestly positive open.
Asian markets delivered a mixed session to start the week, with selling of artificial intelligence-related shares dragging benchmarks in Japan and South Korea sharply lower.
Tokyo’s Nikkei 225 shed 1% on Monday, having already fallen 4% on Friday, with SoftBank Group sinking almost 6% amid continued pressure on AI-linked investments.
South Korea’s Kospi dropped 2%, as Samsung Electronics (KRX:005930) lost 6% and memory chipmaker SK Hynix fell almost 5% in a difficult day for the technology sector.
Gains elsewhere across Asian markets helped offset some of those losses, though sentiment remained cautious given the ongoing uncertainty surrounding the Iran conflict.