SFR parent company Altice France has received a non-binding offer for a large part of its activities from its three main competitors. Bouygues Telecom, Iliad subsidiary Free, and Orange said that their joint offer covers Altice’s B2B and B2C business lines, telecom infrastructure, and frequencies in mainland France. The offer excludes operations in the French overseas territories, as well as stakes in Altice Technical Services, wholesale operator XP Fibre, data centre venture UltraEdge, and outsourcing company Intelcia. The proposed deal gives an indicative implied enterprise value for the whole of Altice France of more than EUR 21 billion, with the targeted activities valued at EUR 17 billion.
The share of the price and value would be approximately 43 percent for Bouygues Telecom, 30 percent for Free, and 27 percent for Orange, reflecting their respective market shares. The three buyers will share the B2C operations and other assets. Orange, however, will not acquire any of the B2B activities, while Bouygues Telecom will be the only operator to take over SFR's mobile network in less densely populated areas.
If Altice France accepts this bid, a due diligence process will follow, leading to a confirmatory offer. Any transaction will then be subject to regulatory approvals. Should these stages be completed, any assets that cannot be immediately transferred to each of the three buyers would be placed in a joint company staffed by Altice France employees during this transition period.
Completion not before late 2027
Bouygues Telecom CEO Olivier Roussat told the French press that, if successful in its bid, the consortium faces a lengthy acquisition process that would not be finalised before the second half of 2027, after the country’s next presidential election. In response to the announcement, French economy minister Roland Lescure stated that the government will be “extremely vigilant” regarding a potential return to a three-operator market and the possible impact on consumer prices.
In February, Altice France owner Patrick Drahi and a majority of the company’s creditors reached an agreement to reduce debt, following a rise in interest rates that rendered the debt burden unsustainable. During this financial restructuring process, which concluded on 01 October, speculation intensified around behind-the-scenes negotiations concerning Drahi’s intention to dismantle his business empire with piecemeal sales.
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Such a takeover bid has long been rumoured as a way to end the intense competitive pressure in the French market. The recent completion of Altice France's debt restructuring was the signal for the rival operators to pounce, in the hope bondholders will be keen to realise quickly some value from their acquired holdings in the company.
The takeover is structured to anticipate concerns from the competition regulator, with Bouygues Telecom, the smallest of the three, getting the most assets, and incumbent Orange the least. Leftover assets like wholesale operator XP Fibre and data centre venture UltraEdge leave Altice with something to settle some of its remaining debt obligations.
However, completion of the deal will not be easy. With France's FTTH and 5G network roll-outs largely completed and France already having some of the lowest telecom prices in Europe, there is little social benefit for the operators to offer, as promised by VodafoneThree in its recent merger taking the UK from four to three operators. Taking out a weak competitor may be attractive to Orange, Free and Bouygues, but the regulatory authorities are likely to see it differently and demand some kind of quid pro quo.
