A consortium led by Bouygues Telecom, including Orange and Free-iliad, has agreed to acquire SFR from Altice France for €20.35 billion ($23.44 billion). This significant deal, pending regulatory approval, would reduce the number of mobile operators in France to three and represents a major consolidation in the European telecom sector.
The acquisition is expected to be completed in the second half of 2027, with Bouygues Telecom securing the largest share of assets. The consortium has also committed to safeguarding employment for SFR staff until 2029.
Bouygues-Led Consortium Strikes $23.44 Billion Deal to Acquire SFR from Altice France
Paris, France – A significant consolidation is set to reshape the French telecommunications landscape as a consortium led by Bouygues Telecom, alongside Orange and Free-iliad, has inked a preliminary agreement with Altice France to acquire the mobile operator SFR. The deal, valued at 20.35 billion euros ($23.44 billion), including debt, marks one of the most substantial European telecom transactions in recent years, pending regulatory approval.
The acquisition marks a pivotal moment for the French telecom market. Image Credit: Philippe Huguen | AFP | Getty Images
The proposed acquisition, if greenlit by antitrust authorities, would reduce the number of major mobile network operators in France from four to three. This move presents a critical test for regulators' stance on telecom consolidation within the competitive European market.
Deal Structure and Key Players
Under the terms of the memorandum of understanding, Bouygues Telecom is set to acquire the largest portion of SFR's assets, comprising approximately 52% of the carved-out revenue. Free-iliad will secure about 27% of the assets, while Orange will take the remaining 21%. Certain network infrastructure and IT systems will be jointly managed during a transitional phase.
The consortium's final agreement comes after a period of intensive negotiations and extensions of exclusivity. Initially, Altice France extended the exclusivity period to June 5 from May 16, following an improved offer from the three operators in April, which escalated from an initial proposal of around 17 billion euros.
Strategic Implications and Future Outlook
Orange CEO Christel Heydemann expressed optimism about the deal's potential to reinforce Orange's leadership in France and Europe, aligning with their strategic 'Trust the future' plan. Heydemann indicated that regulatory discussions had commenced, with behavioral remedies being explored as a potential path to approval.
The financial breakdown of the acquisition indicates that Bouygues Telecom will bear roughly 42% of the total price, Free-iliad 31%, and Orange 27%. Break-up fees, ranging from 100 million to 2 billion euros, have also been agreed upon.
Edward Bouygues, Chairman of Bouygues Telecom, highlighted the transaction as a confirmation of the Bouygues group's commitment to long-term growth and contributing to France's digital sovereignty. Importantly, the consortium has committed to ensuring employment for all SFR staff until the beginning of 2029, either through continued roles or alternative job opportunities.
The completion of this landmark deal is anticipated in the latter half of 2027, contingent upon securing all necessary regulatory clearances.
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