Bouygues, Iliad, and Orange join forces to acquire SFR for 17 billion euros
The three major French operators have submitted a joint offer to acquire the majority of Altice France's assets, the parent company of SFR. This proposal values the targeted assets at 17 billion euros and the entire group at over 21 billion, potentially reshaping the French telecommunications landscape by reducing the market to three operators. Bouygues Telecom captures 43% of the value, Iliad 30%, and Orange 27%, each targeting complementary segments. However, Altice announced its rejection of the offer just a few hours later.
A groundbreaking alliance to acquire the second-largest French operator
The offer submitted on Tuesday evening marks a first in the French telecommunications sector. Bouygues Telecom, Free-Groupe Iliad, and Orange have formalized a non-binding joint proposal aimed at acquiring the majority of Altice France's telecommunications activities. The targeted scope encompasses nearly all of SFR's assets, with the notable exception of stakes in Intelcia, UltraEdge, XP Fibre, and Altice Technical Services, as well as the group's overseas activities.
The planned distribution reflects the strategic ambitions of each player. Bouygues Telecom, securing the largest share at 43% of the total value, would primarily acquire the business operations and rural mobile network. The Iliad Group, with 30%, would also share business customers alongside Bouygues. Orange, despite being the national leader, is content with 27%, focusing on residential customers, infrastructure, and the radio frequencies it would share with its two partners.
According to Olivier Roussat, CEO of Bouygues, this approach represents the first step in a long process with no guarantee of success. The €17 billion for the targeted assets suggests an implicit valuation of over €21 billion for the entire Altice France, based on public information and analyst estimates regarding the assets excluded from the scope.
The Resolution of a Historic Financial Crisis
This offer comes amid a major restructuring at Altice France. On October 1, 2025, the group finalized a historic agreement with its creditors, reducing its debt from 24.1 billion to 15.5 billion euros. This move resulted in the elimination of 8.6 billion euros of liabilities in exchange for granting the lenders a 45% stake in the capital.
Among these creditors are leading American funds such as BlackRock, Pimco, and Fidelity. Despite this, Patrick Drahi retains control of the group with a majority 55% stake, bolstered by shares with multiple voting rights.
Since July 2023, following corruption allegations against Armando Pereira, Patrick Drahi's right-hand man, Altice found itself at the heart of an unprecedented crisis. The billionaire's empire was then burdened with nearly 60 billion euros in debt. To avert an imminent default by 2027, Patrick Drahi undertook multiple asset sales, notably selling BFM TV and RMC to Rodolphe Saadé for 1.55 billion euros in March 2024, followed by Teads for 1 billion dollars and his shares in the British operator BT for 4.1 billion euros. These sales helped persuade creditors to accept a restructuring, thereby avoiding the outright bankruptcy of the group.
A Journey Filled with Regulatory and Social Challenges
If the three operators manage to reach an agreement with Patrick Drahi on financial terms, the path to completion remains fraught with obstacles. The non-binding offer must first be accepted by Altice France, a step that could require negotiations on the buyout price before leading to a firm proposal. Once this second offer is submitted, the review by competition authorities is expected to last about 18 months, according to estimates from Bouygues Telecom.
The return to three operators, something unseen since Free entered the mobile market in 2012, raises questions about maintaining competition and the potential evolution of pricing for consumers. Marc Ferracci, former Minister of Industry, expressed his focus on consumer protection during a discussion in early July on BFM Business.
Assets that cannot be immediately transferred would be placed in a joint venture responsible for transitioning and gradually migrating SFR's 25 million customers. This entity would rely on the current employees of the Altice group. Unions, particularly the CFDT and UNSA, are concerned about potential massive job cuts. Olivier Lelong, CFDT's central union representative at SFR, mentioned on France Inter the risk of more than 6,000 people losing their jobs in the short to medium term. An appeals hearing regarding Altice France's accelerated safeguard plan is scheduled for November 4, 2025.
This content has been automatically translated using artificial intelligence. While we strive for accuracy, some nuances may differ from the original French version.
