Orange and MásMóvil have officially sealed their merger deal, marking a significant development in Spain’s telecom sector. The joint venture, which holds equal shares from both companies, is poised to become a dominant force in the market. Despite the completion of the merger, the new entity is still without a definitive name, leaving industry observers speculating on its future identity.
The merger, announced by Orange on Monday, signifies the beginning of operations for the 50:50 joint venture. However, both Orange and MásMóvil’s websites continue to operate independently under their existing brand names, indicating a seamless transition for customers.
While speculation abounds regarding the new company’s name, reports suggest that “MásOrange” is a leading contender. Other options include variations such as “Orange-MásMóvil” and “MásMóvil-Orange,” along with the more creatively coined “+O.” The decision to potentially incorporate elements of both companies’ identities reflects a strategic move to maintain brand recognition while signaling a new era in the telecom landscape.
Meinrad Spenger, the longstanding CEO of MásMóvil, will assume the role of CEO in the merged entity, supported by Ludovic Pech as CFO and Germán López as COO. Meanwhile, Jean François Fallacher, former CEO of Orange France, will take on the position of non-executive chairman.
The merger is expected to yield significant synergies, with revised projections indicating €490 million by the fourth year post-closure. Additionally, the financial arrangements for the parent companies have been updated, with Orange set to receive approximately €4.4 billion and MásMóvil shareholders €1.65 billion.
The completion of the merger follows a lengthy regulatory process, with approvals from both the European Commission and the Spanish government. Despite initial concerns regarding its anticompetitive nature, the inclusion of remedies, such as a mobile asset sale to Digi Communications, paved the way for regulatory approval.
As Spain’s new telecom leader with 37 million fixed broadband and mobile lines, the merged entity is poised to drive innovation and investment in the market. While the name may still be undecided, the future of telecommunications in Spain appears promising under this new alliance. The formal announcement of the company’s name is expected to follow soon, marking the beginning of a new chapter in Spain’s telecom industry.
