The resulting company will have a value of 18,600 million euros and 20 million customers
Until the approval of competition, both companies will continue to operate independently< /h2>
The French telecommunications giant Orange and its Spanish competitor MásMóvil have announced this Saturday an agreement to merge their operations 50% in Spain and thus create the operator mobile phone company leader in customers in the country, with some 20 million mobile network and around 1.5 million television customers. As reported by both companies in a statement, the resulting company will have a value of 18,600 million euros, although it will not include; Totem, in charge of Orange's infrastructure, or MásMóvil Portugal.
The firm agreement reached comes after intense negotiations that began in March and have continued over the last few months. The talks have finally culminated in a 'joint venture' (joint project) that should be completed “no later than the second half of 2023”, although it is still pending. subject to receiving the approval of the competent authorities. will be made up of the companies Orange and Lorca JVCo -British parent company of MásMóvil- 50% each and with the same rights. The value of Orange for the operation has been set at 7,800 million euros and that of MásMóvil, which includes Euskaltel, at 10,900 million.
This merger will allow The new company wants to compete with Telefonica, one of the main telecommunications companies in Spain. In addition, Orange and MásMóvil plan to accelerate investments in optical fiber to reach homes (known as FTTH) and in secure 5G, while ensuring the future of competition in telecommunications infrastructure in Spain “for the benefit of consumers and companies”.
Looking to the future
” The creation of this new company is of fundamental importance for the group” which will be “stronger in the Spanish market”, underlined the CEO of Orange, Christel Heydemann, cited in the statement. In this line, they claim that the joint company will allow The construction of a “solid operator”, with the capacity to invest in infrastructure, technology and talent worldwide, added the CEO of MásMóvil, Meinrad Spenger >. “We anticipate that this operation will foster competition, digitization and innovation in the Spanish market,” he stressed.
The merger is expected to close during the second half of this year, but now it will be The approval of the competition authorities is necessary. Until then, Orange and MásMóvil will continue to operate independently. The agreement also authorizes each one to enter the Stock Exchange under certain conditions, which allows for a purchase option that allows Orange to take control of the new store. The operation is part of a context in which several leading European operators have called for the consolidation of the market on the continent to reduce competition and increase profitability.