News
French incumbent reportedly sounds out rivals’ interest in spectrum, customers, shops, network infrastructure.
Orange has begun talks with rivals Numericable-SFR and Iliad regarding potential asset sales should it agree a takeover of Bouygues Telecom.
Unnamed sources cited by Reuters late last week said the discussions are at an informal stage, and centre on a chunk of Bouygues Telecom’s spectrum and customer base, as well as select network assets and retail outlets.
Following mounting speculation, Orange and Bouygues Group on 5 January confirmed they are in early merger talks.
According to a separate report by Le Journal du Dimanche, the two companies are working on a deal valuing Bouygues Telecom at €10 billion. Bouygues would receive a 15% stake in Orange worth €8 billion, with the remainder paid in cash.
"All the players want to make it happen," said one of Reuters’ sources last week. "It is probably the last opportunity to succeed in the consolidation of the market."
Any deal would certainly require significant remedies – such as the aforementioned asset sales – in order to win approval from competition regulators.
Based on the latest figures from Orange and Bouygues Telecom, the two together have a combined mobile market share of 59%.
