UPDATE European carrier giant Orange and MASMOVIL have been given the go ahead to merge by the European Commission announcing plans to complete the transaction by the end of Q1 2024. The agreement is designed to combine the capabilities of Orange and MASMOVIL into a single operator with the scale to invest in 5G and fiber for consumers and businesses in Spain.
The joint activities will be formalized in a Joint Venture equally controlled by Orange and MASMOVIL with equal governance rights in the combined entity and create one of Spain’s largest MNOs in terms of number of customers and mobile coverage. Both parties say they will become a leading operator by combining the assets and serving over 7.3 million broadband customers, with over 30 million mobile services.
Christel Heydemann, CEO of Orange, said: “Today’s announcement marks a watershed moment for the Group in Europe. Our proposed Joint Venture with MASMOVIL will create a unique, stronger and more sustainable player in Spain. By joining forces, we can have greater scale, we can innovate, and we can drive investment in the networks of the future for the benefit of consumers and businesses.”
Estimated revenues of the joined companies are expected to exceed more than $8 billion and EBITDAaL of more than $2.5 billion. As part of the package, the parties have agreed to cede to Digi, 60MHz of spectrum, pending approval by the Spanish government, and an optional domestic roaming agreement.
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