O2 and Virgin Media in mega merger talks to become UK’s biggest telecoms provider
MOBILE network O2 is in talks to merge with Virgin Media in a move which would create the UK's largest telecoms provider.
Telefónica, O2's Spanish owner, confirmed it is in discussions with Virgin-owner Liberty Global over a deal to join the two firms together.
It stressed that talks are currently in the "negotiation phase" and that a merger isn't guaranteed to go ahead.
A statement from Telefónica read: "The process initiated by both parties is in a negotiation phase, not being able to guarantee, to this date, neither the precise terms nor the probability of its success."
A deal would bring together O2's 34million customers on its mobile network with Virgin's 5.3million broadband, pay-TV and mobile users.
O2 - which also provides the network for GiffGaff, Tesco Mobile and Sky Mobile - is the UK's largest phone company.
It would also see all 14,000 Virgin Media employees and 6,700 O2 staff in the UK work under the same umbrella company.
A tie-in would create a major rival for BT, which owns EE, and is currently the UK's second largest mobile network.
Overall, it has 28million mobile, TV and broadband customers and provides a million businesses with its services.
The talks have no immediate impact on O2 or Virgin Media customers, although this could change if a deal does go ahead.
The statement from Telefónica went on: "In the event of a satisfactory agreement on this potential transaction, Telefónica will communicate such information to the markets."
Telefónica has been looking for a buyer for O2 since 2016, when a planned take over by CK Hutchinson, the owner of mobile network provider Three, fell through after being blocked by European competition regulators.
The mobile network side of Virgin Media was due to be taken over by Vodafone later this year but it's not clear if this will go ahead following this latest potential deal.
In November, Vodafone won the five-year contract from BT-owned EE.
Virgin Media did not wish to comment.
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