Home / Business and Economy / Telecom Giants Vie for SFR in Mega Deal
Telecom Giants Vie for SFR in Mega Deal
17 Apr
Summary
- Bouygues, Orange, and Iliad are in exclusive talks to buy SFR.
- The deal values SFR at €20.4bn, higher than a previous rejection.
- Regulators' approval is uncertain due to potential consumer price hikes.
Bouygues Telecom, in partnership with Orange and Iliad, is in exclusive talks to acquire the French telecoms unit of Patrick Drahi's Altice Group. The offer values the operator at €20.4 billion, exceeding a previous €17 billion bid that Drahi rejected.
This potential consolidation seeks to boost buyer profitability by diminishing fierce competition. However, the deal faces scrutiny from antitrust regulators who are wary of potential price hikes for consumers. European competition watchdogs are currently considering broader relaxations of merger rules to bolster the EU economy against international rivals.
For Patrick Drahi, this sale is part of a larger strategy to divest assets, reduce debt, and wind down his sprawling conglomerate. The buyers have until May 15 to finalize their offer, though a definitive agreement is not guaranteed.
The proposed structure involves splitting SFR's mobile, broadband, and business services among Bouygues, Iliad, and Orange. Concerns have been raised by labor unions regarding potential layoffs and by the French government about consumer pricing impacts.
