UK Virgin Media and O2 merger – Desperately seeking synergies?

Report Overview

UK Virgin Media and O2 merger – Desperately seeking synergies?

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UK Virgin Media and O2 merger – Desperately seeking synergies?

Contents

The press has reported on an imminent merger of O2 and Virgin Media (UK). This is not likely to be driven by the pursuit of revenue synergies as dis-synergies are more likely if the brands are merged

Cost synergies are real, albeit a bit tangential. However, in a mature market even modest synergies are worth pursuing

A full regulatory review may be required but approval is likely. Market impact is somewhat nuanced, with the benefit of a distracted competitor short-term and a larger but still rational operator ultimately