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Orange, Bouygues, and Free secure €20.35bn agreement to acquire SFR, a deal that will reduce the number of operators in France to three if approved by regulators
- The deal which is subject to regulatory approvals is expected to be completed in the second half of 2027.
- The EU Commission has historically retained control over telecoms mergers but France’s competition authority may get involved because of the SFR deal’s unusual structure, in which it’s being divided among three companies.
- However, French President Emmanuel Macron has consistently supported a more flexible approach to merger reviews and previously opposed Brussels’ decision to block the Alstom-Siemens merger.
- Germany is also in favor of relaxing the merger rules and EU Commission’s President Ursula von der Leyen is championing for the review.
- The EU Commission is currently running a public consultation on the merger reviews, with final adoption expected later in 2026.
Assessment
This deal would set an important precedent for telecom consolidation across Europe, particularly in Germany, where operators have long argued for market consolidation. Rumors have also circulated that Telefónica could pursue an acquisition of 1&1, and a successful SFR transaction may improve the prospects of such a deal receiving regulatory approval.