Key facts
- A consortium of Bouygues Telecom, Orange, and Free-iliad Group has agreed to buy SFR from Altice France.
- The total value of the acquisition, including debt, is €20.35 billion ($23.44 billion).
- Bouygues Telecom will acquire the largest portion of SFR's assets, followed by Free-iliad and Orange.
- The deal is expected to reduce the number of mobile network operators in France from four to three.
- Employment for acquired staff is guaranteed until the beginning of 2029.
- The transaction is expected to be completed in the second half of 2027, subject to regulatory approval.
A consortium comprising Bouygues Telecom, Orange, and Free-iliad Group has agreed to purchase SFR from Altice France for €20.35 billion ($23.44 billion), including debt. This deal, which would consolidate France's mobile market from four operators to three, is set to test the European Union's regulatory resolve.
The three companies had their earlier €17 billion offer rejected in October, but have now agreed on a sweetened €20.45 billion ($23.54 billion) deal. Under the terms, Bouygues Telecom will acquire the largest share of SFR's assets, followed by Free-iliad and Orange. Certain assets, including parts of the fixed and mobile networks and IT systems, will be jointly managed during a transition period.
The price split among the buyers is approximately 42% for Bouygues Telecom, 31% for Free-iliad, and 27% for Orange. The parties have also agreed upon break-up fees ranging from €100 million to €2 billion. The consortium has committed to ensuring employment for all staff of the acquired assets until the beginning of 2029, either through continued roles or alternative job opportunities.
Orange CEO Christel Heydemann stated that the agreement would reinforce Orange's leadership in France and Europe and support its strategic plan. Edward Bouygues, Chairman of Bouygues Telecom, highlighted the transaction as confirmation of the group's commitment to long-term growth for its core businesses and to contributing to France's digital sovereignty. French Finance Minister Roland Lescure has stated he will be "extremely vigilant" regarding prices and service quality, and that the deal must undergo "thorough examination."
The European Commission typically has 25 working days for a first-stage review, which can be extended. Most mergers are approved, but the Commission may open a detailed second-stage investigation. The transaction is anticipated to be finalized in the latter half of 2027, contingent upon obtaining necessary regulatory clearances.