Patrick Drahi accepts €20.35 billion Orange, Bouygues Telecom and Free bid for SFR

A further milestone has been reached in this colossal case.

A revised €20.35 billion proposal for Altice France

On Friday 17 April, Altice France owner Patrick Drahi accepted a new all-in takeover offer submitted by a consortium bringing together Orange, Bouygues Telecom and Free. Valued at €20.35 billion, the deal - which could reshape the telecoms market - allows the four parties to move into exclusive negotiations.

It is worth noting from the outset that the group significantly increased its initial bid, which stood at €17 billion and was almost immediately rejected by Altice France.

Approvals, consultation and a long timetable

Even so, the acquisition remains highly complex. In particular, the companies will have to consult employee representative bodies and secure approval from regulators, including the French Competition Authority and Arcep. Those authorities may ultimately approve or block the transaction.

If the talks reach a successful outcome, the deal is expected to be made official by the end of 2027, with several more years still needed before the transfer of assets is fully completed.

How Orange, Bouygues Telecom and Free would split SFR

In a statement released for the occasion, Bouygues Telecom, Free and Orange say they are considering the following allocation:

• the “B2B” business and customer base would be taken over by Bouygues Telecom;
• the “B2C” business and customer base would be divided between Bouygues Telecom, Free (Iliad Group) and Orange.

Lastly, the remaining assets and resources (notably infrastructure and spectrum) would be shared between Bouygues Telecom, Free (Iliad Group) and Orange - except for SFR’s mobile network in less densely populated areas, which would be taken over by Bouygues Telecom. They also underline: “There is no certainty at this stage that this transaction will be completed.”

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As BFM rightly points out, the total sale is expected to reach €23 billion once the remaining 30% of SFR’s assets are sold (a portion that will not be transferred to the three operators). According to the outlet, Patrick Drahi committed to reaching this final amount with creditors during the company’s debt restructuring.

By way of reminder, after an initial offer was turned down last year, Orange, Bouygues and Free said in January that they were prepared to raise their price to acquire SFR. The operator’s owner had also allowed them to review the accounts so negotiations could continue. Since then, progress appears to have accelerated.