Orange, Bouygues merger talks collapse

4 Apr 2016

French telecoms operators Orange Group and Bouygues Telecom have announced that they have ended negotiations regarding Orange’s potential takeover of its smaller rival. ‘After in-depth discussions, [Orange’s] Board of Directors has concluded that an agreement regarding a possible consolidation with Bouygues Telecom has not been reached’, a press release said. Orange added that it will pursue the deployment of its five-year strategic plan, dubbed ‘Essentials 2020’ (introduced in 2015), which focuses on investment in very high-speed broadband networks while providing an ‘unmatched’ customer experience. For its part, Bouygues pledged to continue its standalone strategy, which it said already resulted in a return to growth in sales and EBITDA in 2015.

As previously reported by TeleGeography’s CommsUpdate, Orange and Bouygues entered into a confidentiality agreement in January 2016, marking the beginning of official negotiations in a deal that would reduce the number of mobile network operators in France from four to three. The potential transaction valued Bouygues at roughly EUR10 billion (USD11.3 billion).

France, Bouygues Telecom, Orange France, Orange Group