UK draws red line on Bharti’s BT Holding above 25%
Synopsis
A reported UK government move to block Sunil Bharti Mittal from increasing his BT stake beyond 25% has put the spotlight on telecom infrastructure ownership. The development comes as governments increasingly review investments involving communications networks and strategic assets. Bharti Enterprises already owns 24.95% of BT, while any higher holding could trigger a national security assessment.
Sunil Bharti Mittal's Bharti Enterprises faces reported UK opposition to raising its BT stake above 25%, reflecting wider scrutiny of investments involving telecommunications networks and critical infrastructure assets.
Key Highlights
- Sunil Bharti Mittal's Bharti Enterprises owns 24.95% of BT Group.
- UK government reportedly opposes any BT stake increase above 25%.
- BT owns Openreach, a major UK broadband infrastructure provider.
- BT reported £20.4 billion revenue in fiscal 2025.
- National security rules could trigger review of any larger stake.
The UK government has reportedly stepped in to block Sunil Bharti Mittal's Bharti Enterprises from acquiring more than 25% of the stake in BT Group is giving rise to a larger issue – tighter government control over investments in critical telecommunications infrastructure.
UK officials would oppose any rise beyond the 25% mark, which would require a review under the National Security and Investment Act, according to a report in the Financial Times. Currently, Bharti Enterprises' holding in the company is 24.95% and it is the largest shareholder of the company.
Telecom Assets Face Closer Examination
The reported location follows the trend of several developed economies expanding powers to look for foreign investment in sectors deemed strategically important.
Telecommunications networks are a focal area due to their importance as a backbone for broadband connectivity, government communications, cloud services and digital infrastructure. Over the last few years, authorities around the globe have raised their sights on deals concerning telecommunications networks and data infrastructure, such as Australia, Canada, the United States, and the United Kingdom.
The recent decision by the regulator in the case of Sunil Bharti Mittal and BT is an example of how the ownership changes in big telecoms operators can lure regulatory attention even if they are not in the form of a takeover proposal.
Why BT Remains a Sensitive Asset
BT is one of the UK's biggest telecom providers and has a division called Openreach that runs a large proportion of the UK's fixed-line broadband network.
Openreach's full fibre network now covers over 18 million premises, according to the latest annual results from BT. BT also offers communications services to government agencies, public-sector organisations and businesses.
As part of that function, the company is considered to be part of the critical national infrastructure in the UK.
The investment, made when Bharti acquired its original 24.5% stake in 2024, was on the condition of establishing a national security committee in BT.
Investors Watch Regulatory Boundaries
Earlier this month, it was reported that Bharti had been considering a higher stake of up to 29.9%, which is below the 30% mark needed for a mandatory takeover offer under UK market rules.
With revenue amounting to £20.4 billion and adjusted EBITDA totaling £8.2 billion during the fiscal year concluding March 31, 2025, BT has firmly established its status as one of the biggest telecom operators in Europe.
BT, Bharti and the UK government declined to make any public comment on the latest report. Regulatory concerns are still playing a crucial role in major telecom investments, alongside financial and governance concerns.
FAQs
Q1. Why is the UK reviewing a potential increase in BT ownership?
Any stake above 25% could trigger a review under national security rules covering critical infrastructure.
Q2. What makes BT strategically important?
BT owns Openreach and provides communications services used by consumers, businesses and public-sector organisations.
Q3. How much of BT does Bharti Enterprises currently own?
Bharti Enterprises currently holds 24.95% of BT, making it the company's largest shareholder.
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Pooja Malik is a business journalist with over six years of experience covering startups, entrepreneurship, and emerging trends. She has previously worked with leading media platforms such as YourStory Media and BW BusinessWorld, where she reported on business, policy, and market developments. Currently, she serves as Editor at The Inspirepreneur Magazine, where she writes and edits stories across business, lifestyle, and travel, with a focus on clarity, accuracy, and reader relevance.
