Orange, Bouygues and Free sign €20.35 billion deal to acquire SFR from Altice France, reshaping the French telecoms market

The deal at a glance

Bouygues Telecom, Iliad (Free) and Orange reached an agreement with Altice France late on Saturday to purchase SFR for a total of €20.35 billion, with a potential earn-out of up to €650 million at closing. The deal, described by the companies as "one of the largest industrial operations in Europe in the telecommunications sector," would dismantle France's second-largest mobile carrier and distribute its assets among the three buyers.

This transaction represents one of the largest industrial operations in Europe in the telecommunications sector.

The signing came roughly 24 hours later than initially expected. On Friday, the parties had extended their exclusive negotiation period by 48 hours, citing progress in the talks. The final agreement was announced shortly before midnight on Saturday.

How the assets are split

Under the memorandum of understanding, Bouygues Telecom will shoulder 42% of the purchase price, Free-iliad 31%, and Orange 27%, through the acquisition of SFR shares. In terms of customer allocation, Bouygues Telecom secures the B2B segment and part of the consumer business, totalling approximately 6.4 million mobile and fixed-line subscribers. Free will take over the roughly 6 million customers of the RED by SFR brand plus nearly 2 million additional consumer subscribers. Orange is set to receive about 4.9 million customers. The three acquirers also plan to divide the spectrum frequencies currently operated by SFR.

Revenue from the perimeter being acquired reached €8 billion in 2025. Bouygues Telecom would claim the largest share at 52%, ahead of Iliad at 27% and Orange at 21%. Orange's smaller portion reflects its dominant position in the French market.

Regulatory hurdles and timeline

Completion of the transaction remains subject to review by competition authorities. The companies cautioned that "at this stage, there is no certainty that this operation will be carried out." A veto from regulators is still possible, given the unprecedented return to a three-operator structure in France. Closing is targeted for the second half of 2027.

At this stage, there is no certainty that this operation will be carried out.

French Economy Minister Roland Lescure called the announcement "a major and decisive step for an operation" that will reshape the sector. The operators themselves flagged that migrating millions of subscribers, infrastructure and systems constitutes a multi-year industrial programme, while promising "significant synergies" that would strengthen their investment capacity.

Employment protections and workforce concerns

Employees of SFR who are taken on by the buyers will have their jobs guaranteed until early 2029, according to the joint statement. SFR currently employs around 8,000 people. Mediapart noted that while Altice founder Patrick Drahi can celebrate the sale, the workforce faces a less certain future beyond that guarantee date.

The deal marks the disappearance of the SFR brand from the French telecoms landscape, ending a chapter that saw the operator burdened by heavy debt under Altice's ownership. The exclusive negotiations had been underway since mid-April before culminating in Saturday's agreement.