Bouygues Telecom, Iliad, and Orange have finally reached an agreement to acquire and split the assets of SFR, Altice France’s operator, for €20.35 billion (approximately $23.4 billion). An analyst noted that this deal could be the largest reshuffle in the French market in over a decade.

If the deal proceeds, the number of mobile operators in France will be reduced from four to three. This will also serve as the latest litmus test for whether European regulators are willing to accept market consolidation—a development many operators have been eagerly anticipating.

According to the memorandum of understanding signed on Saturday, the consortium formed by these three operators will acquire the majority of SFR’s assets and distribute the mobile operator’s assets and customers among the three, with Bouygues Telecom receiving the largest share.

According to the indicative offer proposed by the group in April, Bouygues Telecom will pay 42% of the agreed price, while Iliad and Orange will pay 31% and 27% respectively. However, the parties noted that these proportions may vary depending on changes in the number of customers by the time the transaction is completed.

The transaction is expected to be completed in the second half of 2027, pending regulatory approval. All four parties have stated that the success of the deal remains uncertain.

This deal has been in the works for several months, with all parties entering exclusive negotiations since mid-April. In October last year, the consortium made an initial offer of 17 billion euros (19.6 billion dollars), which was almost immediately rejected. Altice founder Patrick Drahi had previously stated in early 2025 that he hoped the valuation of SFR’s sale (including debt) would reach approximately 30 billion euros (35 billion dollars).

How to allocate assets

This joint acquisition was described as an “equity deal”: the consortium will take over SFR as a whole, and after the transaction is completed, the three operators will then divide its assets, including spectrum resources.

Bouygues Telecom will acquire SFR’s enterprise business and a portion of its consumer operations, including 3.8 million mobile customers (500,000 of whom are Prixtel MVNO users) and 2.6 million fixed-line customers. Additionally, the company will gain access to its jointly operated rural network “Crozon” the B2B infrastructure for fixed-line services, SFR’s stake in the urban fiber-optic network “Faber” and a selection of store networks.

“As we celebrate our 30th anniversary, this transaction will allow us to expand our scale by becoming the second largest telecommunications operator in France and always maintain our goal of better serving our customers, “said Benoît Torloting, CEO of Bouygues Telecom, in a statement.

Iliad will take over the 6 million user base of SFR’s low-priced brand Red, as well as some consumer businesses, including 1.6 million users and 400000 small business customers. This acquisition will bring Iliad’s total user base to nearly 31 million. Iliad also stated that it will acquire 50MHz spectrum in multiple frequency bands through this transaction.

Orange will acquire 4.9 million customers from SFR’s consumer business, as well as three mobile virtual network operators – Régio, Syma, and Coriolis.

Consortium members have stated that they have agreed to retain all SFR employees until early 2029 and have committed to communicating with groups representing the operator’s employees during the transaction process.

Major transactions face regulatory scrutiny

“This transaction paves the way for the most significant transformation in the French telecommunications industry since the disruptive entry of Iliad, the fourth largest mobile operator, into the market in 2012, “said Kester Mann, Director of Consumer and Connectivity Business at CCS Insight.

He believes that the agreement is a ‘successful outcome’ for all parties involved. That is to say, each of the three operators has acquired new assets that will help them expand their scale, and SFR’s exit from the market will alleviate the intensity of market competition. He also stated that this has put an end to months of speculation surrounding Altice’s heavy debt burden.

He said, “The biggest challenge now is to convince competition regulators that this deal will bring positive results to the French market.”

Kester Mann stated that it seems easier to achieve this now compared to a few years ago, as regulatory positions are shifting towards a more favorable direction for industry consolidation following recent transactions such as Vodafone Three in the UK and MasOrange in Spain. He said, “Although it may go through a lengthy review process, there is a high probability that this transaction will be approved.”