Potential Sale of SFR Sparks Interest from Bouygues and Free
As Altice confronts significant financial challenges, Bouygues Telecom and Free explore acquisition options for the telecom company SFR.
Preparations are underway for a possible sale of SFR, as Martin Bouygues and Xavier Niel, the owners of Bouygues Telecom and Free respectively, are reportedly strategizing for a potential acquisition of their competitor.
This comes amid significant financial difficulties for SFR's parent company, Altice, which is grappling with a debt totaling approximately €24 billion, part of which was restructured at the end of February.
If an acquisition occurs, Altice’s founder, Patrick Drahi, could potentially receive up to €5 billion from the sale, as noted by various financial sources.
For Bouygues Telecom, acquiring SFR would enhance its competitive stance in the French market, enabling it to more effectively challenge Orange, the current market leader.
Xavier Niel, founder of Iliad (Free), perceives the acquisition as an opportunity to consolidate operations within France and expand in Europe, potentially forming a larger transnational entity.
However, any acquisition would require scrutiny from regulatory bodies.
A potential acquisition by Bouygues would be reviewed by the French Competition Authority, while an acquisition by Iliad would fall under the jurisdiction of the European Commission.
Other stakeholders are also monitoring the situation, including Orange, as well as international players such as Etisalat from the United Arab Emirates, STC from Saudi Arabia, and investment funds like KKR and Ardian.
This comes amid significant financial difficulties for SFR's parent company, Altice, which is grappling with a debt totaling approximately €24 billion, part of which was restructured at the end of February.
If an acquisition occurs, Altice’s founder, Patrick Drahi, could potentially receive up to €5 billion from the sale, as noted by various financial sources.
For Bouygues Telecom, acquiring SFR would enhance its competitive stance in the French market, enabling it to more effectively challenge Orange, the current market leader.
Xavier Niel, founder of Iliad (Free), perceives the acquisition as an opportunity to consolidate operations within France and expand in Europe, potentially forming a larger transnational entity.
However, any acquisition would require scrutiny from regulatory bodies.
A potential acquisition by Bouygues would be reviewed by the French Competition Authority, while an acquisition by Iliad would fall under the jurisdiction of the European Commission.
Other stakeholders are also monitoring the situation, including Orange, as well as international players such as Etisalat from the United Arab Emirates, STC from Saudi Arabia, and investment funds like KKR and Ardian.
