Overview
Shares in BT Group climbed after the company revealed a major strategic tie-up with Verizon Communications that will fold their respective international enterprise operations into a 50:50 joint venture. The announcement, made on June 29, 2026, sent BT stock up 1.9% to 198.75p and drove the share price close to a session high of 199.55p.
Terms of the arrangement
Under the agreement, Verizon will make an equalization payment of $625 million to BT, delivering an immediate cash benefit to the UK telecom. The newly formed joint venture will combine BT International with Verizon’s international enterprise business and is expected to serve more than 3,000 customers across more than 180 countries, representing approximately $4 billion in combined annual revenue.
The joint venture is being positioned as a platform for the cloud and AI era, with both parent companies intending to concentrate their efforts on their domestic markets after the transaction completes. The deal remains subject to regulatory clearances and other customary closing conditions, and is expected to complete in 2027.
Impact on BT financial guidance
BT revised its FY27 financial guidance to reflect the transaction and the treatment of the International division as a discontinued operation. Adjusted group revenue for FY27 is now expected to be between ?17.1 billion and ?17.6 billion, down from the prior range of ?19.0 billion to ?19.5 billion. The company left adjusted UK service revenue guidance unchanged at ?15.1 billion to ?15.4 billion, underscoring that its domestic business metrics remain intact.
Adjusted EBITDA is now forecast at between ?8.1 billion and ?8.2 billion, excluding the International division. Market reaction suggested investors viewed the move to sharpen BT’s focus on its UK core as a positive strategic step, helping shares trade well above their 52-week low of 173p.
Broader market context
The wider FTSE 100 nevertheless moved lower on the day, falling 0.20%. The weaker tone reflected comments from Bank of England chief economist Huw Pill, who cautioned against complacency on inflation after UK consumer price inflation remained at 2.8% in May, above the 2% target. His remarks suggested monetary policy has not been restrictive enough, creating a cautious backdrop for the market.
BT’s ability to rally in this environment highlights the deal as a company-specific catalyst. The stock’s performance on the announcement left it trading within striking distance of the intra-day high recorded after the news.
Summary of key facts
- Announcement date: June 29, 2026.
- Structure: 50:50 joint venture combining BT International and Verizon ?s international enterprise operations.
- Immediate payment: Verizon to pay BT $625 million as an equalization payment.
- Scale: Expected to serve more than 3,000 customers in over 180 countries, representing about $4 billion in combined annual revenue.
- Timing: Transaction expected to complete in 2027, subject to regulatory approvals and customary conditions.