Orange merges its activities in Spain with MasMovil
This agreement is the result of exclusive negotiations announced on March 8 with a view to creating a joint venture owned equally by the two groups. The transaction, which is expected to be finalized no later than the second half of 2023, gives an enterprise value of 7.8 billion euros to Orange Spain and 10.9 billion to MasMovil. When the opening of negotiations was announced in March, the enterprise value of Orange’s activities in Spain was estimated at 8.1 billion.
This merger should allow synergies of more than 450 million euros per year from the fourth year following the completion of the transaction, against a background of investments necessary for the development of 5G.
Second Orange Market
After France, Spain is Orange’s second largest market, where the four main operators, with Telefonica and Vodafone, are waging a price war that has weighed on the French group’s revenues and margins for several years.
The operator resulting from this merger “will be stronger and able to invest in 5G and fiber for the benefit of customers across Spain”, declared Christel Heydemann, general manager of Orange since April, quoted in the communicated. “I firmly believe that the creation of this new company is of fundamental importance for the group, the Spanish telecommunications market and customers,” she added.
Under this agreement, Orange has an option to take control of the new entity in the event of an IPO
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