UK set to block Bharti from raising BT stake above 25%

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UK blocks Bharti BT stake above 25%

Highlights

The UK government will oppose Bharti raising its BT stake above 25%, citing national infrastructure security concerns tied to Openreach supplying fibre broadband to over 22mn homes.
Bharti Enterprises has increased its BT holding to 24.95% in 2024, with any rise above 25% triggering a formal review under the National Security and Investment Act.
Bharti's Sunil Mittal has strengthened ties with BT CEO Allison Kirkby and secured two board seats, signaling heightened influence without surpassing the 25% threshold.

Government stance on BT ownership threshold

As first reported by Financial Times, the UK government would oppose any attempt by Bharti to increase its holding in BT above 25%, with officials arguing that critical national infrastructure should remain under sovereign UK control. BT’s network arm Openreach supplies fibre broadband to more than 22mn homes across Britain, making the ownership question especially sensitive.

Bharti Enterprises bought a 24.5% stake in BT in 2024 from Patrick Drahi and has since moved to 24.95%. Any increase beyond the 25% threshold would require government approval and trigger a formal review under the National Security and Investment Act, a quasi-judicial process.

One British government figure said the position is not aimed specifically at Bharti or India, but reflects a broader policy on resilience and sovereign capability. The person added that ministers generally try to signal their stance to overseas investors early to avoid later friction over potential transactions.

Implications for BT and UK telecoms investment

Since building its stake in BT, Mittal has developed a close relationship with chief executive Allison Kirkby and has held several strategy meetings with her. He also secured two board seats last year, underlining Bharti’s growing presence inside the company even without moving past the 25% level.

People familiar with BT board discussions in recent months say Mittal has indicated no immediate plan to raise the stake further, although directors remain aware of his broader ambitions for both BT and his UK investment. A spokesperson for Mittal declined to comment, while BT also declined to comment and the UK government declined to comment.

Mittal remains a significant long-term investor in Britain beyond BT. He worked with the UK government on the 2020 plan to take control of failed space venture OneWeb, and Airtel Africa is exploring a London listing for its mobile money business after the Iran war disrupted an earlier flotation plan in the Middle East.

In our earlier coverage of the EU’s draft tech sovereignty strategy, we discussed Brussels’ plans to reduce reliance on foreign providers of critical digital infrastructure, including cloud, AI and semiconductors. The proposal includes a Cloud and AI Development Act to expand EU data-centre capacity and a revamped chips push to strengthen domestic manufacturing, alongside “sovereignty risk assessments” meant to improve resilience and limit vulnerabilities tied to external control.

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