consolidation

Orange has taken full control of MasOrange after closing the purchase of the 50% that was still in the hands of Lorca HoldCo, the company owned by the KKR, Providence and Cinven funds. With this operation, expected for monthsthe French company becomes the sole owner of the largest telecommunications operator in Spain. The movement represents a very important step towards a long-awaited market consolidation which the large operators have been behind for years. One in which the fewer intermediate operators, the better for the giant operators. what has happened. On Christmas Day, Orange, Bouygues Telecom and Iliad (Free) announced the joint purchase of SFR for 20.35 billion euros. Agreement through which the three groups will share the clients, assets and frequencies of the second largest operator in France. The transaction, which will be closed in 2027 after passing the necessary regulations, follows the line of what happened in Spain: Orange has acquired MasOrange. The other half. Orange has acquired the remaining 50% of the capital of MasOrange, to date in the hands of his co-sharer Lorca. The agreement, valued at 4.25 billion euros, already has the necessary authorizations in Europe. Following this move, Orange now controls 100% of the operator’s capital, completely diluting MásOrange. Why is it important. Spain becomes the second most important market in Europe for Orange. At the end of the first quarter of 2026, MasOrange had 26 million mobile telephone customers and 7.1 million fixed broadband customers. Those numbers now belong entirely to Orange. “The acquisition of all of MasOrange is a strategic step in our “Trust in the Future” plan and reinforces Orange’s position in Spain.” Secondly, the movement advocates the European consolidation of the telecommunications market. The large groups are closing the circle: Telefónica, Orange, and Deutsche Telekom. The photo. Europe is one of the regions with the most operators per region, a total of 34 compared to 3 in the United States and 4 in the Chinese market. The major European companies need to continue absorbing their small rivals. Reason? The following: Proportionally, Europe has eight times more operators than the US and China, something that ends up translating into much more compressed margins and a drop in 41% in the market capitalization of the sector between 2015 and 2023. Without consolidation, European telecoms have a difficult time not depending on foreign funds and capital.