Virgin Media and O2 in mega-merger talks

The owners of O2 and Virgin Media are in multi-billion-pound talks about a ‘mega-merger’. Telefonica, O2’s Spanish owner, has said that the talks are at the negotiation phase and there is no guarantee that a deal can be done at this stage.

If an equal joint venture is created, then it is estimated that the combined company will be worth £30bn and have 34% of the UK market. The new entity would also leapfrog BT to become Britain’s biggest operator.