BT and Verizon strike deal to merge international businesses

BT has revealed aims to cut costs by a further £700 million over the next four years as it reported flat full-year earnings and falling revenues. (BT/PA) -

BT has agreed a deal with US mobile phone firm Verizon to merge their international businesses to create a joint venture with annual sales of around four billion US dollars (£3 billion).

Under the deal, Verizon will pay a so-called equalisation payment of 625 million US dollars (£473 million) to BT and both firms will be equal shareholders in the combined company.