French Telecoms Agree €20.35B SFR Breakup Deal, June 08

Three major French telecom operators signed a memorandum of understanding on June 8 to acquire SFR from Altice France for €20.35 billion ($23.44 billion), including debt. The deal would reduce France’s mobile operators from four to three and reshape the country’s telecom landscape. Regulatory approval is required, with decisions expected within 12 months.

How the Assets Get Divided

Bouygues will take 52% of SFR’s revenue, including the enterprise unit and 6.4 million consumer customers. Iliad’s Free will acquire 27% of assets worth €6.2 billion, gaining 8 million subscribers and 50 MHz of spectrum. Orange will receive 21% of assets worth €5.6 billion, adding 5 million mobile and fixed customers and 47 MHz of spectrum. Some fixed and mobile network assets will be held jointly during a transition period.

What This Means for Free and Iliad

Free will add over 8 million subscribers to its base, bringing its total to nearly 31 million customers in France. The acquisition includes the RED budget brand, which serves 6 million customers, plus 1.6 million SFR consumer subscribers and 400,000 small business customers. Iliad has already secured €6.5 billion in financing. The deal is projected to generate €2 billion in additional annual revenue and €900 million in additional operating cash flow, including over €500 million in synergies.

Regulatory Path Ahead

Orange and Bouygues will file their acquisition in France, where they generate more than two-thirds of turnover within the EU. Iliad must notify the European Commission separately. Executives said notification would occur within days. It remains unclear whether France’s competition authority or the European Commission will lead the review, but clarity is expected within weeks. The deal challenges the EU’s long-held preference for four operators per country in Europe.

Employment and Timeline

The consortium committed to ensuring employment for all acquired SFR staff until the beginning of 2029, either in their current roles or through alternative positions. The three operators are engaging in employee consultations as required. Migrating millions of subscribers and systems is a multi-year industrial program. Service continuity depends on retaining SFR’s technical expertise.

Final Thoughts

The €20.35 billion SFR breakup represents one of Europe’s largest telecom deals in years. With regulatory approval likely within 12 months, the consolidation will strengthen France’s three remaining operators’ investment capacity for 5G, fiber, and cloud infrastructure.

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