Orange has begun to contact international investment banks, according to Expansionto prepare an offer for 50% of Masorange that does not control. It has reserved 4,400 million euros – processes of the megadividndo generated during the merger – specifically for that operation.
The main vendors would be the providence funds (14.8%), KKR (13.4%) and Cinven (12.1%), together with Spanish minority shareholders.
Why is it important. This movement can mark a turning point in the Spanish telecommunications market, where Orange wants to go from being one more competitor – the third operator, in fact – becoming a dominant giant. Give continuity to the process initiated with the fusion of MasMóvil and Orange Spain that culminated with Masorange.
If materialized, this operation could influence competition, prices and services offered to millions of users
Between the lines. He Timing The operation speaks for itself. Although the shareholders pact establishes that until September 2025 the works for a possible OPV cannot be formally initiated, Orange is already moving file.
- This anticipation shows the strategic importance that the French gives to the Spanish market …
- … but also its determination to avoid any possible complication or competitor interested in this participation.
Orange CEO, Christel Heydemann, already dropped clues during the last presentation of results When mentioning that “the OPV was not the only option” and remember that they kept the 4.4 billion intact to “maintain all open options.”
A clear sign of your will to explore other ways beyond the OPV.
In perspective. This operation marks the final episode of European consolidation, where three large groups – Deutsche Telekom, Telefónica and Orange – are gradually creating an increasingly structured continental oligopoly.
Spain, considered so far one of the most competitive markets in Europe and with relatively low prices, can begin to raise prices in the face of lower competition. Movistar, meanwhile, Has Vodafone Spain in the Diana and Digi.
For Orange, converting Spain into its second most important market after France has enormous strategic value:
- It allows you to diversify risks to the regulatory pressure of your domestic market.
- And makes him gain financial muscle on the European stage.
And now what. Although the formal operation cannot be closed until March 2026 (when the two -year period expires during which the sale of shares according to the fusion pact) is prohibited, everything indicates that Orange and the funds will prefer a direct sale instead of an OPV.
An IPO to brush would complicate both parties:
- Orange would have a subsidiary quoted with greater obligations of rePorting
- And the funds would be forced to sell packages progressively.
The greatest question is not whether Orange will complete the absorption, but how the Spanish market will be once you have total Masorange control. And, incidentally, if regulators will have something to say about this concentration of power in a sector as special as that of telecos.
Chair change in Brussels, from Vestager to Riberayou can remove obstacles with European consolidation on the horizon.
The key is no longer so much in itself, Orange will complete the operation, but how it could impact the Spanish market if consummated. And, incidentally, if regulators will have something to say about this concentration of power in a sector as special as that of telecos.
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