Bouygues Telecom has received the green light from France’s Competition Authority (Autorité de la concurrence) to acquire La Poste Telecom, the nation’s leading mobile virtual network operator (MVNO).
The approval, granted without any conditions, comes five months after Bouygues Telecom first entered exclusive negotiations to purchase the MVNO for EUR 950 million.
The acquisition will see Bouygues Telecom take complete control of La Poste Telecom, which is 51% owned by La Poste Group and 49% by SFR. As part of the deal, Bouygues Telecom will also establish an exclusive distribution partnership with La Poste Group and La Banque Postale, leveraging the strong brand recognition and extensive distribution network associated with these entities.
This acquisition is set to bolster Bouygues Telecom’s customer base by approximately 2.3 million mobile users, further solidifying its position in the competitive French telecom market. La Poste Telecom, with its 400 employees and a 2023 turnover of around EUR 300 million, operates across mainland France and several overseas territories, including Reunion Island, Mayotte, Guadeloupe, Martinique, and French Guiana.
Related: Bouygues Telecom in Discussion to Acquire La Poste MVNO
Market Share Analysis
The Competition Authority’s analysis determined that the acquisition would only result in a modest shift in market competition, given La Poste Telecom’s relatively small market share. The Competition Authority also emphasized the continued competitive pressure from other major mobile network operators (MNOs) like Orange, SFR, and Free.
Moreover, the Competition Authority considered the transaction’s potential impact on distribution networks, noting that while Bouygues Telecom would gain access to La Poste’s extensive physical network of post offices and bank branches, the growing trend of distance selling (online and telesales) in the mobile market mitigates concerns. With online channels accounting for two-thirds of mobile sales, consumers will retain access to many options, even in areas where physical branches are sparse.
Crucially, the Competition Authority also assessed the potential risk of Bouygues Telecom exploiting its position to disadvantage other MVNOs by restricting access or degrading service quality. It concluded that existing regulatory frameworks and competition from other MNOs make such a strategy unlikely.
Despite the Competition Authority’s approval, the deal still requires the consent of SFR, which has the right to preemptively purchase the shares and approve the buyer, given its ongoing commitment to provide network services to La Poste Telecom until the end of 2026.
Read More: Bouygues Telecom’s Acquisition of La Poste Mobile Faces Delays
