PARIS: Bouygues Telecom, Orange and Free-iliad have signed a memorandum of understanding with Altice France to acquire telecom operator SFR for 20.35 billion euros ($23.44 billion), including debt, the companies said Saturday.
If approved by regulators, the deal would rank among Europe’s largest telecom acquisitions in recent years. The breakup of SFR would reduce the number of mobile network operators in France from four to three, testing antitrust authorities’ willingness to allow consolidation in the region’s crowded telecom market.
Under the terms, Bouygues would take the largest share of SFR’s assets, representing about 52% of carved-out revenue, while Free-iliad would receive about 27% and Orange 21%. Some assets, including portions of fixed and mobile networks and IT systems, would be held jointly during a transition period.
The Bouygues-led consortium said Friday that, given progress in negotiations, parties had granted themselves an additional 48 hours to finalize agreements.
Last month, Altice France extended the exclusivity period for talks with the consortium until June 5, after the three operators raised their offer in April from around 17 billion euros.
Orange CEO Christel Heydemann said in April that the company had begun regulatory discussions ahead of the deal and cited behavioral remedies as a possible route to approval.
“This agreement is set to reinforce Orange’s leadership position in France and in Europe and will support the ambitions of our ‘Trust the future’ plan,” Heydemann said Saturday.
The price split among buyers remains about 42% for Bouygues Telecom, 31% for Free-iliad and 27% for Orange. Breakup fees ranging from 100 million euros to 2 billion euros have also been agreed upon.
“With this transaction, the Bouygues group confirms its commitment to placing its core businesses on a long-term growth path and to contributing to France’s digital sovereignty,” Bouygues Telecom Chairman Edward Bouygues said.
The consortium said it would guarantee employment for all staff of the acquired assets until early 2029, either by allowing them to remain in their current roles or providing other job opportunities.
The deal is expected to close in the second half of 2027 following regulatory clearance.
