BT Group (BT.L): Deal to combine international B2B with Verizon a modest strategic positive

Research evidence excerpt

BT Group (BT.L): Deal to combine international B2B with Verizon a modest strategic positive

Equity Research

29 June 2026 | 11:36AM BST

BT Group (BT.L): Deal to combine international B2B with Verizon a

modest strategic positive

We see BT’s announced combination of its international business with Verizon’s, and Andrew Lee

+44(20)7774-1383 |

the deconsolidation of the new entity, as a modest strategic positive, bringing andrew.j.lee@gs.com

Goldman Sachs International

portfolio simplification and synergy potential (BT sees scope to extract >5% of

Halima Elyas

combined $4bn revenue as synergies). Additionally, the new, larger platform may +44(20)7774-6503 |

facilitate potential for BT to step further away from what has been a challenging halima.elyas@gs.comGoldman Sachs International

division. BT’s international business has been a material drag on Group EBITDA Mollie Witcombe

growth over the past few years. While it is broadly cash flow-neutral today, it has +44(20)7051-6252mollie.witcombe@gs.com|

been a cash drag historically, with limited visibility for investors on the path to more Goldman Sachs International

Rakicevicstructural improvement. With the prospect of selling the asset outright — previously Sofija | +44(20)7774-6556

indicated by BT as an ambition — appearing less likely, we view this transaction as a sofija.rakicevic@gs.com Goldman Sachs International

pragmatic alternative.

Mridul Agrawal

+1(332)245-7969 |

mridul.y.agrawal@gs.com

In the detail Goldman Sachs India SPL

n BT and Verizon have agreed to combine their respective international businesses

in a 50:50 JV.

n The new JV will serve multinational organisations and represent c.$4bn

combined annual revenue.

n Both BT and Verizon will hold equal voting rights and Verizon has agreed to pay