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3/8, 8:36 AM (Source: TeleTrader)
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Orange, MasMovil to reach a €19.6B deal

Orange and MasMovil said on Tuesday that they have begun negotiations to combine their businesses in Spain. The combined enterprise valuation will be €19.6 billion and will become Spain's most important telecommunications transaction in the last 20 years.

According to the statement released by Orange, the merger will take the form of a 50/50 joint venture. Both parties would benefit from the same governance rights in the combined entity. In addition, it would become a market player with revenues of more than €7.5 billion, gaining the efficiency needed to undertake an ambitious 5G network expansion in Spain.

"I look forward to creating this joint-venture with MasMovil, building on our existing successful collaboration, to become a stronger player capable of making the investments required to develop the Spanish market," said Stéphane Richard, Chairman & CEO of Orange.

Baha Breaking News (BBN) / JG