Orange, Bouygues confirm merger talks


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Editor

| 06 January 2016




In what could have huge consequences for Europe’s telecoms industry, French operators Orange and Bouygues have confirmed that they are in talks over a possible merger.



Reports from France suggest that the merger between the two would be worth €10 billion, but the scale of any deal would almost certainly come under regulatory scrutiny given it would reduce the number of French operators from four to three and account for almost half the French mobile and fixed telecoms market.

Bouygues has been strong in supporting over-the-top (OTT) and subscription video-on-demand (SVOD) streaming, and in July 2015 took the top spot for Netflix ISP ratings.

Commenting on the news of the move, Orange confirmed that discussions had taken place but that there was no set timetable to events and that it did not have any commitment to any particular pre-defined outcome.

In a statement it said: “The group is exploring the opportunities available within the French telecoms market, while keeping in mind that its investments and its solid position afford it a total independence in its approach. Orange will act solely in the interests of its shareholders, its employees and its customers and will be particularly vigilant with regards to the value created through any resulting project.”

For its part, Bouygues also said that there was no guarantee that the talks would end in a deal. It added: “Bouygues Telecom has returned to growth on the back of its strategies to develop digital uses, and its transformation plan. Bouygues firmly believes that its telecoms activity can create value in the future in a context marked by the rapid expansion of very-high-speed mobile and fixed services ... Bouygues will attach decisive importance, in all the discussions it will pursue [with Orange], to the interests of Bouygues Telecom employees and to investment momentum within the sector, which must remain strong in the interests of the consumer.”