Bouygues, Orange, and Free-iliad Sign MoU to Acquire SFR for €20.35 Billion

A consortium featuring France’s major telecommunications players—Bouygues Telecom, Orange, and the Free-iliad Group—has officially signed a Memorandum of Understanding (MoU) to acquire the assets of SFR from Altice France. The deal, valued at 20.35 billion euros, marks a significant consolidation of the French telecom market. The acquisition scope includes the core operations of SFR, though it notably excludes specific assets such as XP Fibre, Ultraedge, and Altice’s technical services and overseas operations.

The financial structure of the deal includes a potential earn-out of 650 million euros, alongside provisions for price adjustments based on SFR’s performance leading up to the final closing. The consortium has established a clear ownership split, with Bouygues Telecom holding 42%, Free-iliad at 31%, and Orange at 27%. These figures remain subject to minor fluctuations based on customer base shifts prior to the transaction's completion, which is currently targeted for the second half of 2027.

This move represents a major shift in the competitive landscape of European telecommunications. By integrating SFR’s assets, the consortium members aim to strengthen their market position, though the deal faces rigorous scrutiny from competition authorities. To mitigate risks, the parties have agreed to substantial break-up fees ranging from 100 million to 2 billion euros, depending on the circumstances of a potential termination.

Beyond the financial implications, the consortium has prioritized labor stability, committing to retain all employees within the acquired scope until at least early 2029. This pledge serves as a critical component of the agreement, aiming to ensure operational continuity during the complex integration process. As the industry watches this development, the focus will now shift to the regulatory approval process, which will determine the ultimate viability of this massive market consolidation.