Verizon Communications (NYSE: VZ) entered into an agreement with BT Group plc on June 28, 2026, to combine their respective international wireline connectivity and managed network services businesses into a newly formed joint venture entity called Jasper NewCo Limited.

Under the terms of the transaction, both Verizon and BT will each contribute the equity interests of subsidiaries conducting their international wireline and managed network services operations to NewCo. Verizon will also make a $625 million cash payment to NewCo, which will be distributed to BT. Each party will hold a 50% ownership stake in NewCo upon closing. The transaction is subject to customary regulatory approvals and closing conditions.

The value of each contributed business is subject to cash adjustments based on levels of cash, net working capital, and indebtedness at the time of closing. The agreement also contemplates a Joint Venture Agreement governing NewCo, along with ancillary commercial agreements and transition services arrangements.

In the second quarter of 2026, Verizon classified the net assets of its contributed business as held for sale, and expects to record an estimated loss in the range of $700 million to $800 million in connection with that classification.

Verizon also disclosed additional charges expected in the second quarter of 2026 as part of its ongoing transformation initiatives. The company anticipates a severance charge of $350 million to $450 million related to headcount reductions, and asset rationalization charges of $200 million to $300 million, primarily tied to the decision to cease use of certain real estate and network assets.