UK Government Hesitant on Bharti Mittal's Increased Stake in BT

The UK government is reportedly hesitant to support billionaire Sunil Bharti Mittal's plans to increase his stake in BT, citing concerns over foreign influence on critical national infrastructure. With BT's Openreach division playing a vital role in the UK's digital landscape, officials emphasize the importance of maintaining domestic control. Bharti Group, which became a significant investor in BT in 2024, has seen its shares rise sharply since the investment. However, any attempt to raise ownership beyond 25% could trigger scrutiny under national security regulations. Mittal has established a close relationship with BT's leadership, but the government remains focused on safeguarding national interests.

By Narendra Chaudhary May 28, 2026, 12:08 IST

Concerns Over Foreign Influence in BT

The UK government is reportedly not inclined to endorse any initiative by billionaire entrepreneur Sunil Bharti Mittal to enhance his shareholding in BT, the telecom giant. Officials are concerned that increased foreign ownership could jeopardize the sovereign control over critical infrastructure deemed essential for national security. BT’s network division, Openreach, is vital to the UK's digital landscape, providing fibre broadband services to more than 22 million households. According to a report by a financial publication, the British government considers these assets strategically significant and prefers them to remain under local management.

In 2024, Bharti Group emerged as one of BT’s largest investors after acquiring a 24.5% stake from Altice's founder, Patrick Drahi. This investment positioned the Indian conglomerate as a key player among BT’s shareholders. Following the acquisition, Bharti expressed support for BT’s leadership and its long-term recovery strategy. Since then, BT’s stock has experienced a remarkable increase, with shares rising by 55% post-investment, as per data from LSEG.

However, the UK government seems determined to prevent any further ownership increases that could enhance Bharti’s influence within the company. A government official stated, “This is not about Bharti or India specifically; it’s about ensuring that critical national infrastructure remains under UK control for clear reasons. It’s crucial for the market to understand that this is not personal, but rather about resilience and national capability, which have different standards today than in the past.”

Potential Review Under National Security Regulations

The report indicates that if Bharti seeks to increase its stake beyond 25%, such a move would automatically trigger scrutiny under the UK’s National Security and Investment Act. This legislation allows authorities to examine transactions that might impact national interests or critical infrastructure. The British government aims to clarify its stance early to prevent any future misunderstandings with international investors.

Despite these limitations, Mittal has maintained strong business connections with the UK over the years. In 2020, Bharti collaborated with the British government to rescue the satellite firm OneWeb after its collapse. Additionally, Bharti’s African telecom division is considering a London listing for its mobile money venture, following disruptions to earlier Middle Eastern listing plans due to geopolitical tensions related to the Iran conflict.

Mittal's Strategic Engagement with BT

Since acquiring a significant stake, Mittal has fostered a close working relationship with BT’s CEO, Allison Kirkby. They are believed to have engaged in numerous discussions regarding the company’s future direction and growth strategies. Bharti has also secured two positions on BT’s board, with Mittal and Bharti Airtel’s vice chairman, Gopal Vittal, joining as non-independent non-executive directors in September of the previous year.

Earlier, Bharti clarified that it did not plan to acquire the entirety of BT, which is the largest broadband and mobile operator in the UK and was once a state monopoly. The UK government eventually approved Bharti’s initial investment towards the end of 2024 after a thorough national security evaluation. As part of the approval process, BT established a dedicated national security committee to oversee strategic operations that could impact the UK’s security interests. The government indicated that this committee would monitor “strategic work that it performs which has an impact on or is in respect of the national security” of the UK.