French Telecoms Majors in $24 Billion Talks to Consolidate Operations -- Update

By Najat Kantouar and Elena Vardon

France's Bouygues Telecom, Orange and Free-iliad Group said they have renewed talks with Altice Group for the acquisition of most of its French telecommunications operations, and have put forward an improved offer valuing the assets at 20.35 billion euros ($23.98 billion).

The parties revived discussions and kicked off due diligence in January following months of negotiations. Altice, which is owned by French-Israeli billionaire Patrick Drahi, in October rejected a 17 billion-euro offer including debt from the three companies for a large part of its French telecom business, grouped under the SFR brand.

A deal by the trio would reshape France's telecoms sector, cutting the number of major operators to three from four and offering the players the benefits of consolidation. The move would follow on the heels of similar moves in Spain and in the U.K. Dealmaking has been sweeping the European telecommunications sector as executives and policymakers push for greater scale to ease competition and fund investment in infrastructure and new technologies.

The U.K.'s antitrust watchdog recently approved Vodafone's deal to merge its U.K. business with rival operator Three after the companies pledged to invest 11 billion pounds ($14.88 billion) to build a next-generation 5G network. In Spain, Orange took full control of MasOrange in October, completing a tie-up with MasMovil agreed on in 2022.

The consortium has been granted an exclusivity period until May 15 to wrap up the terms of the deal and transaction documents, Bouygues, Iliad, Orange and Altice said Friday in a joint statement.

The buyers envisage a split of SFR's consumer arm and other assets and resources including infrastructure and spectrum between the three parties.

Bouygues's stake, representing 42% of the total price, would also include SFR's business-to-business unit and its customers, as well as its mobile network in less densely populated areas.

Iliad, which is owned by French telecoms billionaire Xavier Niel, would pay 31% of the price, while Orange would account for 27%. The assets being split exclude stakes in Intelcia, XP Fibre, UltraEdge and Altice Technical Services, as well as Altice's operations in French overseas regions.

The deal would bolster France's telecoms sector and the wider digital economy, the companies said.

There is no certainty that the offer, which is subject to regulatory approvals and consultation with worker unions, will result in a deal, the consortium added.

Altice has been under pressure to sell off parts of its previously vast business to reduce its debt burden, making a deal critical for it to unlock equity value, J.P.Morgan analysts wrote in a note to clients in October. Creditors are seeking to avoid another restructuring, while the three telecoms majors see the transaction as key to restoring market balance, they said.

Write to Najat Kantouar at [e-mail] and to Elena Vardon at [e-mail]

(END) Dow Jones Newswires

04-17-26 0405ET