Full Breakdown
French Telecom Trio Signs €20.35 bn Deal to Acquire SFR
6/8/2026, 9:20:00 PM
Deal Summary
On June 6, Bouygues Telecom, Iliad-owned Free and Orange signed a memorandum of understanding with Altice France to buy SFR for €20.35 bn (including debt). The deal would reduce France’s mobile operators from four to three, testing EU competition policy.
Deal Structure & Economics
Bouygues will take SFR’s B2B segment and most low-density customers; Iliad will acquire the RED brand and about two million contracts; Orange will receive roughly five million customers, a share of the MVNO portfolio and 47 MHz of spectrum, raising its total to 221 MHz. The price split is 42 % Bouygues, 31 % Iliad, 27 % Orange; revenue allocation is roughly 52 % Bouygues, 27 % Iliad, 21 % Orange. Orange expects over €500 million of annual synergies; integration costs are €1.3 bn, and the assets should generate about €0.9 bn of annual EBITDA for Orange France.
Regulatory Review
Bouygues and Orange will file with French competition authorities; Iliad must seek European Commission approval. The antitrust review may exceed a year, with final agreements expected in the second half of 2026 and closing in the second half of 2027, pending clearance.
Official Statements
Orange’s chief executive said the deal strengthens the market position and that the company is ready to discuss behavioural remedies, while Bouygues’ chairman called the purchase a long-term growth commitment and a contribution to French digital sovereignty. Iliad’s chief executive welcomed EU proposals to ease merger rules, calling them a positive sign. The consortium pledged to protect all jobs in the acquired businesses until early 2029.
Opposition Concerns
Consumer groups and competition watchdogs warn that reducing operators may raise prices and weaken contestability. EU regulators have previously blocked telecom mergers to preserve a four-operator market, and the proposal may require substantial remedies.
Conflicting Reports
Sources differ on the timing of final agreement signing—some cite the second half of 2026, others only reference a second-half-2027 completion. Reported percentages of revenue versus price allocation for each buyer also vary across sources, reflecting different measurement bases.
Verbatim Quotes
- “This agreement is set to reinforce Orange’s leadership position in France and in Europe and will support the ambitions of our 'Trust the future' plan,” — Christel Heydemann, CEO, Orange
- “With this transaction, the Bouygues group confirms its commitment to placing its core businesses on a long-term growth path and to contributing to France’s digital sovereignty,” — Edward Bouygues, Chairman, Bouygues Telecom
- “Iliad CEO Thomas Reynaud told reporters that proposed EU merger rule overhauls could be seen as a "positive sign" for the deal.” — Thomas Reynaud, CEO, Iliad
- “The migration of millions of subscribers, infrastructure, and systems constitutes a multi-year work programme,” — Joint statement, Bouygues-Iliad-Orange consortium
Outlook
The consortium will file competition notifications, negotiate any required behavioural remedies, and begin a multi-year integration of SFR’s network and customers. The final decision will shape France’s telecom landscape and may set a precedent for future European consolidations.
