Orange and MasMovil sign merger deal
Orange and MasMovil have signed a merger agreement to combine operations in Spain. The merger is based on an enterprise value of 18.6 billion euros, including 10.9 billion for MasMovil and 7.8 billion for Orange Spain.
The combined joint venture will be controlled equally by Orange and MasMovil. The merger creates a heavyweight spanning mobile and broadband, posing a challenge to top player Telefonica and possibly opening the way to similar alliances in markets such as Italy, Portugal and the UK.
The deal includes a two-year lock-up provision that prevents Orange and MasMovil from selling their shares. The aim is to have a possible initial public offering (IPO) after a lock-up period. The transaction is subject to approval from EU antitrust authorities and is expected to close in the second-half of 2023 at the latest.
Orange is controlled by the French state through a 23% stake, while MasMovil's parent is London-based Lorca JV Co, a holding majority owned by buyout funds KKR, Providence and Cinven. Spain's mobile market is a four-way fight with Telefonica's Movistar brand holding a 28.24% share, Orange 22.91%, Vodafone 22.26% and MasMovil with 20.55%.
See What’s Next in Tech With the Fast Forward Newsletter
Tweets From @varindiamag
Nothing to see here - yet
When they Tweet, their Tweets will show up here.