Bouygues Telecom, Free and Orange Still in Talks to Acquire SFR
The French telecom landscape has arguably never been closer to shrinking from four to three major players. The trio Bouygues Telecom, Free, and Orange has confirmed "the existence of discussions with the Altice Group" regarding the potential acquisition of a significant portion of its telecommunications operations.
Bouygues Telecom, Free, and Orange, acting as a consortium, have confirmed that due diligence processes have been underway since early January 2026. "The legal and financial terms of the transaction have not been agreed upon as of today," they are careful to specify. In the customary phrasing, there is no certainty that this process will come to fruition.
This morning BFM Business reported that the trio is considering raising its offer for Altice to around €20bn. A few weeks ago, a figure of €17bn was circulating, but reports suggested that Patrick Drahi's group was aiming for €20bn.
A Bit Pricey, But...
"A price increase of this magnitude would be a surprise for us," concedes Stephane Beyazian of Oddo BHF. At 8.2x its 2027 EBITDAaL, Altice France's valuation multiple would be generous, especially, according to the analyst, given the relatively mediocre quality of the assets and recent sector transactions. Nevertheless, the deal could prove positive over a three to four year horizon, even before factoring in the potential reduction in competitive pressure within the industry.
Orange is the French leader of telecommunications company. Net sales (including intragroup) break down by activity as follows:
- telecommunication services for individuals (78.2%): mobile telephone services (272.8 million clients at the end of 2025; Orange brand in France, Orange Belgium in Belgium, Orange Communications Luxembourg in Luxembourg, MásOrange in Spain, Orange Polska in Poland, etc.), fixed telephone services and Internet access (38.1 million clients). The group also offers services for telecommunication operators. Net sales break down by country between France (54.6%), Europe (21.8%), Africa and Middle East (23.6%);
- telecommunication services to businesses (117.2%): Internet access services, mobile telephone, voice and data transmission services and integration and information management for communication applications;
- telecommunication services to international telecommunication operators (2.9%);
- operation of passive mobile infrastructure (1.7%; Totem): management of a portfolio of approximately 27,000 telecommunications towers in France and Spain.
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