Orange is close to reaching an agreement with rivals on how to divide Bouygues Telecom assets to help ensure their envisaged merger passes regulatory muster, according to the French incumbent’s CEO Stephane Richard.
Orange (EPA:ORA) is close to reaching an agreement with rivals on how to divide Bouygues Telecom assets to help ensure their envisaged merger passes regulatory muster, according to the French incumbent’s CEO Stephane Richard.
Reuters cited Richard on the sidelines of an event in Paris saying that talks with SFR and Iliad are “nearly completed” and that the companies “roughly agree on the major points of this dividing up.”
A merger between Orange and Bouygues Telecom would reduce the number of players in the French mobile market from four to three and, as such, they are likely to be required to sell some assets to address competition concerns.
Richard reportedly echoed comments by Martin Bouygues, CEO of the Bouygues group, late last month that Orange has until the end of March to negotiate a takeover of Bouygues Telecom.
Orange confirmed in early January that it was in M&A talks with Bouygues.
Local press have valued the deal at €10bn (US$10.8bn) plus disposals worth €6bn. The price represents more than 13x Bouygues Telecom’s estimated €750m FY 2015 EBITDA. Together, the companies have a mobile market share of 59%.
According to French newspaper Les Echos, SFR’s Patrick Drahi could spend up to €4bn to acquire a majority of the Bouygues Telecom’s assets that will be divested.