Bouygues, Orange and Iliad Strike €20.35 Billion Deal to Acquire SFR

France’s telecom sector is on the verge of a major transformation after Bouygues Telecom, Orange, and Free, part of the Iliad Group, signed a memorandum of understanding (MoU) with Altice France to acquire telecom operator SFR in a deal valued at €20.35 billion ($23.44 billion), including debt.

The agreement follows months of negotiations between Altice France and a consortium led by Bouygues Telecom. The parties recently extended discussions by 48 hours to finalize the transaction after making significant progress toward a definitive agreement. Earlier this year, Altice France also prolonged the exclusivity period for talks, allowing the three telecom companies additional time to improve and finalize their offer.

The consortium had previously increased its bid from approximately €17 billion in April, demonstrating strong interest in acquiring SFR, one of France’s largest telecommunications providers. If the transaction receives regulatory approval, it will become one of the largest telecom acquisitions in Europe in recent years.

The proposed SFR acquisition would significantly reshape the French telecommunications market by reducing the number of mobile network operators from four to three. This development is expected to draw close scrutiny from competition regulators and could serve as an important test of European antitrust policies regarding consolidation in the telecom industry.

Orange Chief Executive Officer Christel Heydemann previously confirmed that the company had already begun discussions with regulators regarding the proposed acquisition. She indicated that behavioral remedies could be considered as part of efforts to secure regulatory approval.

According to the terms outlined in the memorandum, Bouygues Telecom will assume approximately 42% of the acquisition value, while the Free-Iliad Group will account for 31%, and Orange will take on the remaining 27%. The agreement also includes break-up fees ranging from €100 million to €2 billion, providing financial safeguards for all parties involved.

Industry analysts will closely monitor the regulatory review process, as the outcome could influence future telecom mergers and acquisitions across Europe.