BHARTI GLOBAL's acquisition of a 24.5 per cent stake in BT has been approved by the UK government following a detailed national security assessment, after the Indian multinational and British telecom major announced the deal in August.
The Cabinet Office said its decision comes into force on Monday (16), after an assurance that BT would set up a National Security Committee to oversee strategic work.
Bharti Televentures UK Limited acquired 24.5 per cent of the issued share capital of BT - 9.99 per cent on August 12, 2024, and 14.51 per cent on November 18, 2024.
In a statement, the Cabinet Office said, “Following a detailed national security assessment, the Chancellor of the Duchy of Lancaster has made a final order pursuant to section 26 of the National Security and Investment Act 2021, which comes into force on 16 December 2024.”
It added, "The acquisition is a trigger event under section 8(8) of the Act. The Chancellor of the Duchy of Lancaster has approved the acquisition, on the basis that BT will establish a National Security Committee within BT to oversee strategic work that BT performs which has an impact on or is in respect of the national security of the United Kingdom," it said.
Chairman Sunil Bharti Mittal in August described his company's investment in an "iconic" British company as a "significant milestone" for Bharti Enterprises.
The group hoped its investment will create opportunities for India and the UK in artificial intelligence (AI); 5G R&D and core engineering, among other sectors.
Cabinet Office minister Pat McFadden said the final order is "necessary and proportionate" as it mitigates the risk to national security in relation to BT's role in supporting the UK government's domestic and international initiatives in telecommunications; ensuring the UK's cyber security; and acting as a strategic supplier of services to many parts of the UK government, including services which are in support of UK national security.