Altice has ramped up its interest in acquiring Bouygues Telecom, a deal that would create a new leader in France’s mobile market.
Unnamed sources cited in a Bloomberg report late la st week claimed that the cable group is examining the financial and regulatory obstacles to a merger. They added that advisors to each party have also held informal talks about a potential transaction.
A move by Altice for Bouygues’ wireless assets would doubtless face intense scrutiny from antitrust authorities.
Altice is in the midst of merging mobile operator SFR with its French cableco Numericable. Acquiring Bouygues would give it a mobile market share of almost 50%, according to Q3 2014 figures from the operators, enough to comfortably overtake current market leader Orange.
However, the likelihood of a long, drawn-out regulatory review has not dissuaded Altice. CEO Dexter Goei said in November 2014 that although integrating SFR was his immediate priority, the company would consider making a bid for Bouygues during 2015.
He said Altice’s balance sheet would be able to handle another acquisition in the first quarter of this year.
Goei could face competition from his opposite number at Orange. In May last year, Orange and Bouygues reportedly held merger talks but failed to agree on a price.
Then in January, Orange CEO Stephane Richard said that the French incumbent will again turn its attention to consolidating France’s mobile market once it has sold its stake in U.K. telco EE to BT. The £12.5 billion takeover deal was finalised on 5 February.
