French competition authority l’Autorité de la Concurrence would reportedly review incumbent Orange’s acquisition of Bouygues Telecom if the two were to reach an agreement.
French competition authority l’Autorité de la Concurrence would reportedly review incumbent Orange’s (EPA:ORA) acquisition of Bouygues Telecom if the two were to reach an agreement.
Citing three sources close to the matter, Reuters reported that the European Commission (EC) would not seek to play a role in the €10bn cash and shares offer. The EC overruled the UK’s CMA’s request to review 3’s agreed acquisition of O2, and is also reviewing the proposed joint venture between Wind Telecommunicazioni and 3 in Italy.
Authorities at the European Commission and l’Autorité de la Concurrence were not immediately available for comment.
If the four-to-three mobile merger is indeed reviewed domestically, the antitrust body would seek input from telecoms regulator Arcep.
Over the weekend, Arcep chief Sebastien Soriano told Les Echos that the watchdog had “direct veto powers on operators’ frequencies”, adding that it could block what it saw as an uncompetitive transfer.
Furthermore, any deal must not “lead to further consolidation in Orange’s market share, especially in markets it already leads” such as business clients and rural areas, he emphasised.
Orange is expected to seek asset disposal arrangements with rivals SFR and Iliad to win over regulators.
French economy minister Emmanuel Macron, who had publicly spoken out against Altice’s €10bn offer acquisition of Bouygues Telecom last summer, has softened his stance on consolidation after raising €2.8bn (US$3bn) in a spectrum auction last November.
The French state holds a 23% stake in Orange.
