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The deal is expected to begin around 2026
Bouygues Telecom, the telecoms unit of French conglomerate Bouygues, has announced that it has signed an exclusivity agreement with La Poste Group, to purchase La Poste Telecom for €950 million.
This total is set to be adjusted according to the timing of the transaction itself, with current estimates sitting at approximately €963.4 million.
Mobile virtual network operator (MVNO) La Poste Telecom is currently 51% owned by La Poste Group, with the remainder (49%) owned by Bouygues rival French telco SFR.
Bouygues will buy 100% of the company.
La Poste Telecom currently serves 2.3 million customers, generating roughly €300 million in annual sales, via a wholesale agreement with SFR. This agreement is set to expire at the end of 2026, at which points the La Poste Telecom customers will be migrated to Bouygues own mobile network.
According to Bouygues, while this will entail integration costs, it will not require the deployment of additional network capacity.
Bouygues Telecom currently has over 23 million mobile customers, which the company expects to grow as a result of the new deal by leveraging La Poste’s distribution network and benefitting from a brand that is strong and recognised for its values of “trust and proximity.”
“Thanks to this agreement, Bouygues Telecom will be able to increase its customer base and strengthen its position in both mobile and fixed services drawing on La Poste’s distribution network throughout the country,” said Benoît Torloting, CEO of Bouygues Telecom in a press release.
“Bouygues Telecom will bring its expertise and the quality of its fixed and mobile infrastructures to La Poste Mobile, on which La Poste Mobile will be able to draw to continue its development,” he continued.
The transaction is subject to standard regulatory approval, and is expected to close by the end of the year.
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