French telco trio in exclusive talks to acquire SFR for €20.35 billion

Three French telecommunications companies have entered exclusive negotiations to acquire mobile operator SFR from parent company Altice for €20.35 billion ($24 billion). The consortium of Orange Group, Bouygues Telecom, and Iliad Group presented the improved bid after Altice owner Patrick Drahi rejected their previous €17 billion offer in October. The exclusivity period for finalizing transaction terms runs until May 15, 2026. SFR serves approximately 26 million mobile customers across France. If completed, the acquisition would reduce France's mobile market from four carriers to three, following consolidation patterns seen in other European markets like the United Kingdom and Spain. Under the proposed asset division, Bouygues Telecom would take over SFR's business-to-business operations and customers, while consumer operations would be shared among all three acquirers. Bouygues would also assume control of SFR's mobile network in less densely populated areas. The consortium outlined a value distribution of 42 percent for Bouygues Telecom, 31 percent for the Free. Iliad Group, and 27 percent for Orange. The offer covers most SFR assets but excludes certain holdings including fiber company XpFibre, data center firm Ultraedge, and Altice's overseas operations. Altice has pursued multiple asset sales to address significant debt accumulated through years of acquisitions. The company recently spun off and sold its French data center portfolio to Morgan Stanley and is separately marketing its Portuguese mobile unit and data center assets. The SFR bid coincides with Altice's parallel efforts to sell a controlling stake in XpFibre, with initial offers valuing the fiber company at approximately €8 billion including debt. Reports suggest Drahi may seek closer to €30 billion for SFR, indicating potential negotiations ahead.