Orange and MásMóvil have received permission from the European Commission to merge their operations in Spain.
The combined activities of Orange Spain and MásMóvil will be carried out through a 50-50 joint venture, co-controlled by Orange and MásMóvil (LORCA JVCO), with equal governance rights in the combined entity.
The collaboration between MásMóvil and Orange will establish a prominent operator within the Spanish market, boasting a superior customer base, enhanced user experience, top-tier talent, extensive fiber and mobile coverage, and long-term viability. This partnership will also position the entity as a significant investor in Spain's telecom infrastructure development, ensuring sustained growth and innovation in the sector.
Both parties will merge to form a leading operator, combining the assets, capabilities, and teams of the two Spanish companies to serve 7.3+ million fixed customers, 30+ million mobile customers, and 2.2+ million TV customers. The Joint Venture will manage critical network and IT assets to ensure nationwide coverage for both FTTH and 4G/5G.
Financially, the merger will result in a more robust and stable entity in the market, boasting projected revenues exceeding EUR 7.4 billion and an EBITDAaL surpassing EUR 2.3 billion. With an enterprise value of EUR 18.6 billion, the combined company anticipates achieving synergies of over EUR 450 million annually, starting from the fourth year post-completion.
As part of its proposed package of remedies, the parties have agreed to divest 60MHz of spectrum assets to Digi as a remedy taker (pending Spanish Government approval) and to propose an optional national roaming agreement based on market conditions.
Christel Heydemann, CEO of Orange, said, “Our proposed Joint Venture with MásMóvil will create a single, stronger, and more sustainable player in Spain. By joining forces, we can scale, we can innovate, and we can drive investment in Spain for the benefit of consumers and businesses.”
Meinrad Spenger, CEO of MásMóvil, also commented, “All good things are worth waiting for! We are thrilled to assume a relevant role in the Spanish telecommunication sector. Our exceptional team is committed to forming a unified and distinctive company capable of delivering a positive impact and providing a trustful service to the most satisfied clients in Spain.”
Until all closing conditions are met, which is expected by the end of the first quarter of 2024, the two companies will continue to operate independently.
