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Bouygues, Orange, Free-iliad Sign EUR20 Billion Deal to Acquire Altice France's SFR

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Bouygues, Orange, Free-iliad Sign EUR20 Billion Deal to Acquire Altice France's SFR

Bouygues (EN.PA, ENNV.PA) unit Bouygues Telecom, Orange (ORA.PA) and Free-iliad Group signed a memorandum of understanding to jointly acquire French telecommunications operator SFR from Altice France in a 20.35 billion-euro deal.

The allocation of the purchase price remains unchanged from the consortium's indicative offer submitted on April 17. Bouygues Telecom will contribute 42% of the acquisition price, while Free-iliad Group and Orange will account for 31% and 27%, respectively, according to two releases from June 6 and June 7.

The Bouygues-led consortium expects to finalize a definitive agreement during the second half of 2026, with the transaction anticipated to close in the second half of 2027, subject to regulatory approvals and consultations with employee representatives, among other conditions. The buyers will make an initial payment of 350 million euros at signing, with up to 650 million euros contingent on earn-out provisions.

As part of the transaction, Bouygues Telecom is set to acquire SFR's business services division and customer base. Bouygues believes the acquisition would strengthen its position in both the mobile and fixed-line consumer markets, while for Orange, the deal aligns with its broader strategy of market consolidation across Europe and is expected to reinforce its leadership position in the French telecommunications sector.

The MoU follows several months of negotiations between the parties. In May, Altice France extended the consortium's exclusivity period for talks on a potential acquisition to June 5 from the previous deadline of May 16, after the group raised its offer to 20.35 billion euros in April.

The consortium said it will ensure employment for all the staff of the acquired assets until the beginning of 2029, either by allowing them to continue in their present positions or by providing them with a job opportunity.

Bouygues shares were down more than 1%, while Orange's stock rose more than 2% in early morning trading in Paris.

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