A consortium consisting of Bouygues Telecom, Orange, and Free-iliad Group has agreed to purchase SFR for a total of €20.35 billion, which includes debt obligations. Bouygues will retain majority ownership of SFR's assets, with the remaining shares allocated between Orange and Free-iliad Group.
Bouygues Telecom and its partners, Orange and Free-iliad Group, announced on Saturday that they have reached an agreement with Altice France to acquire SFR in a massive deal worth $23.44 billion, incorporating €20.35 billion of debt.
Related ↗British companies halt recruitment amid Iran conflict impact, REC research indicates.The proposed takeover could become one of the largest European telecommunications transactions in several years' history.
Breaking up SFR would shrink France's mobile network operator count to just three, creating a pivotal moment for European antitrust regulators to decide on telecoms consolidation in the highly competitive market.
Read next ↗Tate & Lyle accepts a £2.7 billion all-cash acquisition from Ingredion.Bouygues is set to take control of SFR's majority assets, representing approximately 52% of the newly separated revenue, while Free-iliad will claim around 27% and Orange will hold 21%. The consortium has agreed to share certain assets temporarily, including fixed and mobile network components, as well as IT systems.
A Bouygues-led consortium announced on Friday it would extend negotiations by 48 hours, pending completion of agreement terms following significant progress.
In late April, the consortium led by Bouygues increased its bid to approximately €17 billion, prompting Altice France to extend exclusivity talks until June 5, previously set to conclude on May 16.
Christel Heydemann, Orange's CEO, mentioned in April that the firm was engaging in regulatory talks prior to the massive transaction, with behavioral adjustments being a potential pathway for approval.
The deal is expected to bolster Orange's dominance in both France and Europe, aligning with its "Trust the future" strategic objectives.
Bouygues Telecom retains a significant 42% stake in the deal, while Free-iliad and Orange secure 31% and 27%, respectively. The consortium has set aside break-up fees ranging from €100 million to €2 billion.
Bouygues Telecom's Chairman Edward Bouygues emphasizes their dedication to guiding core businesses toward sustained expansion while supporting France's digital autonomy through strategic investments.
Employment guarantees are in place for all acquired staff, with a commitment to maintain current roles or offer alternative positions through at least January 1, 2029.
Completion of the agreement is anticipated for the latter part of 2027, contingent upon regulatory approvals being granted.
