Six months after outlining a €17 billion bid that was immediately rejected by Patrick Drahi, the Bouygues Telecom–Free-Groupe Iliad–Orange consortium returns to the charge with an improved offer to acquire SFR.
Accepted by its owner, their proposal now stands at €20.35 billion. This is the only notable change in their refreshed offer.
According to their press release, the distribution of price and value would be roughly 42% for Bouygues Telecom, 31% for Free-Groupe Iliad, and 27% for Orange.
The scope targeted covers the bulk of Altice France’s assets, including SFR, but excludes several entities: the stakes in ACS/Intelcia, XP Fibre, UltraEdge, and Altice Technical Services, as well as the group’s activities in the overseas departments and territories.
B2B activities for Bouygues Telecom
Bouygues Telecom would take the lion’s share by acquiring the entire B2B segment—the business customers—and the associated client base, as well as SFR’s mobile network in non-dense areas, a strategic asset for nationwide coverage. The consumer segment (B2C) would be shared among the three operators, as would the infrastructures and the valuable radio frequencies.
In a market they describe as “mature,” the three groups argue that this consolidation would amplify investments in ultra-high-speed network resilience, cybersecurity, and new technologies, with artificial intelligence at the forefront. They also point to the need to “consolidate control over strategic infrastructure for the country.” An argument that resonates particularly in the current climate of digital sovereignty.
The operation submitted to competition authorities
On the social front, the consortium seeks to reassure by describing the move as a “socially responsible” operation intended to “sustain and strengthen the entire sector.” The transaction will be preceded by consultations with the employee representative bodies before any final steps are taken.
That said, the path to completion looks fraught with hurdles. The file must obtain the required regulatory approvals, notably under merger control. The Autorité de la concurrence, and potentially the European Commission depending on the thresholds, will scrutinize the effects of such a consolidation on a market that would shift from four to three national infrastructure operators.
The joint statement also notes in conclusion: “There is no certainty at this stage that this operation will be realised.” A prudent caveat that underscoring the complexity of the case.
Altice France, the parent company of SFR, has granted an exclusivity period until 15 May to finalize the transaction.
Dawn Liphardt