BT España, the Spanish subsidiary of British Telecom, on sale

August 21, 2019

The telecom giant of the United Kingdom, British Telecom (BT) is designing the sale of its Spanish subsidiary, BT España. This operation would have a value of around 300 million Euro.

Orange and MásMóvil are interested in buying it

According to different information, there are already different companies interested in the possible sale, Orange and MásMóvil among them.

Although it can be reasonably expected that the purchase was made by big telecom companies, there is some information that maintains that there are investment funds which are already present in the sector, also interested in the operation.

British Telecom in Spain

It’s been 26 years since BT landed in the Spanish market, in 1993. Thanks to an alliance with Santander Bank, both companies created a 50% partnership to offer an alternative to Telefónica.

Four years later, in 1997, BT acquired100% of the company.

Figures of BT subsidiary in Spain

According to CNMC estimates, BT’s Spanish subsidiary has currently a market share of around 24% of the corporate communications segment.

BT closed the fiscal year with a turnover of 26,414 million Euro, a 1% less than the previous year, and with a net profit of 2,434 million, a 6% more than the previous year. Its debt, one of the main problems of the operator, amounts to 14,970 million Euro.

Reasons to sell BT España

BT España’s parent company, British Telecom, launched an aggressive plan of adjustments that, apart from the sale of its subsidiaries in Spain, Ireland and Italy, has caused the dismissal of 13,000 workers and the closure of 90% of the offices, that is, around 270 offices that the operator had around the United Kingdom.

Alongside, British Telecom intends to invest 4,200 million in the development of new projects.