The French telecom industry has been eagerly anticipating a major announcement for months. Orange, Iliad (Free), and Bouygues Telecom have just officially submitted a joint bid to acquire the majority of the telecom operations of Altice France, the parent company of SFR. This unprecedented partnership could significantly reshape the telecom landscape in France.
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A 17 Billion Euro Bid for SFR
In a joint press release issued tonight, the three operators confirmed that they have presented a non-binding offer to Patrick Drahi, founder and chairman of Altice Group. The bid values the enterprise at 17 billion euros, covering most of SFR’s telecom activities.
However, the proposal does not include several subsidiaries of the group, such as Intelcia, its call centers based in Morocco; UltraEdge and Altice Technical Services, its infrastructure entities; as well as its overseas operations.
If successful, the transaction would value Altice France at an implicit more than 21 billion euros, which is significantly lower than the 28 to 30 billion euros initially hoped for by Patrick Drahi.
A Powerful Trio Against a Debt-Ridden Empire
This joint bid is a historic first in the French telecom sector. Bouygues Telecom, Free, and Orange, traditionally fierce rivals, have decided to join forces to attempt to rescue a weakened player: SFR.
It’s important to note that Altice Group, burdened by a massive debt—over 50 billion euros globally—has been trying to sell its French assets for months to improve its financial situation. The entry of this French trio offers a dignified exit for Drahi, but also a strategic opportunity for these competitors.
By dividing certain segments of SFR among themselves, the three companies could strengthen their respective positions while stabilizing a highly competitive market characterized by low margins and a constant price war.
• The B2B
activity would mainly be taken over by Bouygues Telecom and Free-Iliad Group;
• The B2C activity would be shared among Bouygues Telecom, Free-Iliad Group, and Orange;
• The remaining assets and resources (notably infrastructure and frequencies) would be divided between Bouygues Telecom, Free-Iliad Group, and Orange, except for SFR’s mobile network in less dense areas, which would be taken over by Bouygues Telecom.
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The distribution of price and value would be approximately 43% for Bouygues Telecom, 30% for Free-Iliad Group, and 27% for Orange.
A Deal Under Close Scrutiny
As of now, nothing has been finalized. The offer submitted is described as non-binding
, meaning that no definitive agreement has been reached yet. Moreover, any deal of this magnitude would likely need the approval of the Competition Authority and, probably, the European Commission due to its structural implications on the market.
According to several sources familiar with the matter, exclusive negotiations could open by the end of the year, with a goal to conclude a deal by 2026. Meanwhile, this announcement marks a significant turning point for the sector: SFR, once a flagship of French telecoms, could soon come under the direct control of its three biggest competitors…