UK to resist Indian billionaire Sunil Mittal from increasing stake in telecom giant BT: Report – Firstpost

The UK government will resist any effort by Indian billionaire Sunil Bharti Mittal to expand his holding in BT Group beyond its current level, the Financial Times reported on Thursday, highlighting growing official caution around ownership of critical telecom infrastructure.

The report suggests Britain is reluctant to permit greater foreign influence over BT because of its central role in the country’s communications and digital networks. The issue also reflects a broader trend among Western governments to tighten scrutiny of investments involving strategic assets and national security.

The development comes days after Reuters exclusively reported that Bharti Enterprises was exploring the possibility of increasing its stake in BT to just below the threshold that would require a mandatory takeover offer under UK rules.

Bharti currently owns about 24.95 per cent of BT, making it the British telecom group’s largest shareholder.

National security concerns at centre of debate

Any move by Bharti to increase its holding beyond 25 per cent would likely trigger a fresh government review under Britain’s National Security and Investment Act, legislation designed to give ministers powers to intervene in transactions involving sensitive sectors and strategic infrastructure.

BT is regarded as a key part of Britain’s communications backbone, operating broadband, mobile and enterprise networks across the country.

The Financial Times report said British officials were determined to retain sovereign oversight of what they consider critical national infrastructure, reflecting broader Western concerns over ownership and control of essential telecom and digital assets.

Mittal’s investment in BT has already undergone extensive scrutiny by British authorities. Bharti first acquired a 10 per cent stake in the company in 2024 before gradually increasing its ownership after securing regulatory clearance.

As part of the approval process, BT agreed to establish a National Security Committee responsible for overseeing sensitive operations and ensuring compliance with government security requirements.

Industry observers have long considered it unlikely that British authorities would permit a full foreign takeover of BT because of the company’s strategic role in the country’s communications network.

Speculation over a possible increase in Bharti’s stake had lifted BT shares last week, with investors viewing the move as a sign of confidence in the telecom group’s long-term turnaround strategy.

BT chief executive Allison Kirkby has been leading a sweeping restructuring programme aimed at improving profitability, accelerating fibre broadband deployment and reducing costs.

The company recently raised its cost-saving target from £3 billion to £3.7 billion and extended its restructuring timeline by an additional year to 2030.

Much of the savings are expected to come from workforce reductions and lower infrastructure spending as BT nears the completion of its nationwide fibre broadband rollout.

Mittal’s growing influence within BT

Mittal, one of India’s wealthiest businessmen with an estimated fortune exceeding $13 billion, has steadily expanded his influence inside BT since first investing in the company.

In September last year, Mittal and Gopal Vittal joined BT’s board as non-independent non-executive directors, deepening Bharti’s involvement in the British telecom giant.

Mittal’s relationship with BT dates back decades. Between 1997 and 2001, BT held a stake in Bharti Airtel and maintained representation on the Indian telecom operator’s board.