French telecoms trio lift SFR bid to $24 billion in sector shake-up

Fri, 17th Apr 2026 12:38

* Bouygues ⁠to hold 42% of SFR, Iliad 31%, Orange 27%

* Legal protections tied to assets part of talks, sources say

* Orange shares fall 3.6%, Bouygues down 1.3%

PARIS, ‌April 17 (Reuters) - Bouygues, Iliad-Free and Orange raised their bid for French telecoms operators SFR to 20.35 billion euros ($23.97 billion) on Friday, in what if successful ⁠would be one of the biggest European telecom deals in recent years. The ⁠trio's proposed transaction would cut the number of mobile network operators in France to three from four, setting up a key test for regulators' willingness to allow consolidation in a crowded European telecoms market, where operators have long argued that scale is needed to sustain investment.

It would also mark the full exit from ‌SFR of billionaire Patrick Drahi, who has been cast as the French equivalent of John Malone, who was known for his complex dealmaking.

After roughly five weeks of due diligence, the consortium returned with a revised bid below Drahi’s expectations before both sides spent about two weeks bridging the gap to reach a final price, a source close to the matter told Reuters.

Talks also covered legal protections tied to the assets, sources said. The consortium compiled a list of identified legal risks, two sources said, ‌adding that they had negotiated a protection mechanism with Altice France covering those risks.

The proposed structure would give Bouygues Telecom a 42% stake in SFR, with Iliad and Orange ‌taking 31% and 27% respectively. Other assets, mainly fibre infrastructure and SFR’s overseas operations, are not included in the offer.

REGULATORY, POLITICAL SCRUTINY LIES AHEAD

Any deal would be subject to consultation with the relevant employee representative bodies and would then need clearance from antitrust authorities, the bidders said, adding that an exclusivity period for negotiations lasts until May 15.

If it goes ahead, the deal will face intense ‌scrutiny from French and European competition authorities.

Each operator acquiring a portion of SFR will undergo a separate antitrust review, an Orange spokesperson said.

France’s Finance Ministry said it would remain “extremely vigilant” regarding jobs, consumer prices and continued network investment.

Allowing France to move from four ⁠to three operators ⁠without asset sales — using behavioural remedies like wholesale access instead — could set a precedent ‌for consolidation across Europe, including in Italy, Spain and Germany, Intermonte analysts said.

A European Commission spokesperson said it had not yet been formally notified.

Orange expects to finance its share through debt without impacting its balance sheet and aims to reach an agreement before summer, a source ‌familiar with the matter said.

Bouygues shares were down 1.3% after the announcement, while Orange fell 3.6%, as JPMorgan said investors may worry the bidders are overpaying for the assets.