In a major development within the French telecommunications sector, Altice France has agreed to sell SFR, one of France’s largest mobile operators, to three major industry players: Bouygues Telecom, Orange, and Free (owned by Iliad Group). This acquisition, valued at a substantial €20.35 billion, marks a significant shift in the French market landscape, potentially the most notable change since Iliad’s emergence in 2012.
Altice Group, under the control of French-Israeli billionaire Patrick Drahi, has been impacted by its substantial debt load, which stood at approximately €60 billion, amassed due to various acquisitions across Europe and the United States. The mounting debt burden, exacerbated by rising interest rates and economic setbacks post-COVID, forced Altice to reconsider its financial strategy, leading to intense negotiations over its French assets.
Discussions with SFR’s rivals began in earnest in April 2025, when the initial bid was considered inadequate by Altice. A subsequent offer of €17 billion also faltered. However, the current agreement, which values SFR at €20.35 billion, has finally been accepted, albeit pending a lengthy process of regulatory approval to ensure compliance with competition laws.
This transaction will see Bouygues acquiring the largest share of SFR’s assets, capturing roughly 52% of revenue-generating assets. Free will take 27%, while Orange will manage the remaining 21%. Orange and Bouygues, as major players within the European Union, aim to have their acquisition proposal processed by French regulatory authorities, bypassing the need to notify the European Commission. However, Iliad must approach the European Commission given its different operational structure.
The potential consolidation is noteworthy given the evolving tide in regulatory attitudes towards mergers and acquisitions in the telecoms industry across Europe. Notably, recent approvals like the merger of Vodafone and Three UK, and multiple consolidations in Spain, suggest a favorable environment for such large-scale deals which may reduce market competition yet promise operational efficiencies and enhanced service offerings.
Kester Mann from FDM CSS Insight commented on the potential win-win of this deal, highlighting that the acquisition not only enhances the scale of Bouygues, Orange, and Iliad but also mitigates market competition by eliminating a formidable competitor. For Altice, this deal provides a crucial respite from its debt-laden journey.
While the involved parties anticipate signing definitive legal documents later this year, the completion of the deal is projected for the latter half of 2027. The path now hinges on obtaining the regulatory green light, a challenge compounded by scrutiny but buoyed by recent precedents in telecom mergers within Europe.
