Bouygues Telecom, the telecoms unit of French conglomerate, Bouygues, has announced that it has signed an exclusivity agreement with La Poste Group to acquire La Poste Telecom for EUR 950 million.
This total will be adjusted based on the timing of the transaction— currently estimated to be around EUR 963.4 million.
La Poste Telecom, a mobile virtual network operator (MVNO), is currently 51% owned by La Poste Group, with the remaining 49% owned by Bouygues' rival French telco, SFR. Bouygues will acquire 100% of the company.
La Poste Telecom currently serves 2.3 million customers and generates approximately EUR 300 million in annual sales through a wholesale agreement with SFR. This agreement will expire at the end of 2026, at which point La Poste Telecom customers will be moved to Bouygues' mobile network.
According to Bouygues, while there will be integration costs, there will be no need to deploy additional network capacity.
Bouygues Telecom currently has over 23 million mobile customers, which the company expects to increase as a result of the new partnership by leveraging La Poste's distribution network and benefiting from a strong brand known for its values of ‘trust and proximity.’
“Thanks to this agreement, Bouygues Telecom will be able to increase its customer base and strengthen its position in both mobile and fixed services, drawing on La Poste’s distribution network throughout the country,” said Benoît Torloting, CEO of Bouygues Telecom in a press release.
“Bouygues Telecom will bring its expertise and the quality of its fixed and mobile infrastructures to La Poste Mobile, on which La Poste Mobile will be able to draw to continue its development,” he continued.
The transaction is subject to standard regulatory approval and is expected to be completed by the end of the year.
