Bouygues-Led Consortium Negotiates €20.35 Billion Acquisition of SFR

A consortium comprising Bouygues Telecom, Iliad SA, and Orange SA is in exclusive negotiations to acquire SFR, the second-largest mobile carrier in France, from billionaire Patrick Drahi’s Altice France. The consortium has raised its bid to €20.35 billion ($24 billion), a 20% increase from an earlier rejected offer of €17 billion. The exclusivity period granted by Altice is set to last until May 15, 2026, allowing the consortium time to finalize the transaction, which is anticipated to be the largest deal involving a French company since Holcim AG’s acquisition of Lafarge SA in 2015.

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The proposed acquisition would significantly consolidate the French telecom market, reducing the number of major players from four to three. This consolidation is seen as a strategic move by European operators, who argue that increased scale is necessary to invest in network infrastructure and remain competitive. The deal is expected to face scrutiny from regulators, particularly concerning its potential impact on consumer prices in France, which are currently among the lowest in Europe.

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Under the terms of the proposed deal, Bouygues is expected to acquire approximately 42% of SFR's assets, while Iliad and Orange would take 31% and 27%, respectively. For Drahi, the transaction represents a critical step in alleviating Altice’s substantial debt burden, as he seeks to raise capital and reduce leverage within his telecommunications empire. The negotiations come amid ongoing discussions about the future of Drahi’s business, which has been characterized by aggressive, debt-fueled acquisitions.

Bloomberg

The acquisition will require approval from regulatory bodies, including the European Commission, which has recently shown a more favorable stance towards consolidation in the telecom sector. France’s finance minister has expressed a commitment to closely monitor the deal's implications for mobile pricing and employment, as SFR unions have raised concerns about potential job losses, with around 8,000 positions at stake. The consortium has stated that the transaction will be “socially responsible” and aims to bolster the digital economy in France.

Bloomberg

While the consortium is optimistic about the negotiations, the finalization of the deal remains uncertain, with potential delays or complications still possible. The ongoing discussions highlight the complexities involved in large-scale telecom mergers, particularly in a mature and competitive market like France.

Bouygues, Iliad, And Orange Near A Deal For Altice’s SFR

• “The regulatory complexity means it could take up to two years to close.” — Erhan Gurses, Bloomberg Intelligence Analyst

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• “At this stage, many details still need to be discussed and negotiated,” — SFR Memo to Staff

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This acquisition, if successful, could reshape the landscape of the French telecommunications industry, with significant implications for consumers, employees, and market competition.

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