Investment Banking
Freshfields
Full Credential Description
When BT announced its plans to acquire mobile operator EE, it faced significant challenges due to extensive objections from various stakeholders in the telecoms sector, prompting a thorough investigation by the UKs Competition and Markets Authority (CMA). The CMA explored ten different lines of inquiry, particularly focusing on concerns that the merger could substantially lessen competition in the supply of mobile and broadband to mobile virtual network operators (MVNOs) and mobile network operators (MNOs). This scrutiny was compounded by a concurrent investigation into another merger between O2 and Three, which could have further reduced the number of MNOs in the UK from four to three. To navigate these complexities, a dedicated project team was formed, comprising lawyers from Freshfields and BT, alongside economists from Compass Lexecon. This integrated team engaged with the CMA even before the formal phase 1 review began, providing detailed explanations of the technology involved, the evolving market landscape, and the pro-competitive benefits of the merger. They also proactively addressed potential complications arising from the ongoing European Commission investigation into the O2 and Three merger. In a strategic move to expedite the clearance process, the team applied for a fast track reference to phase 2, bypassing the full phase 1 review. This approach proved advantageous, as the CMA ultimately cleared the merger unconditionally, without requiring any remedies. The successful merger added over 25 million mobile customers to BT, which was hailed as a significant benefit for shareholders, customers, and the UK economy, with BT committing to continued investment and innovation in the sector. The deal was recognized in the 2016 FT Innovative Lawyers Europe rankings, receiving high commendation in the Navigating Regulation category.