France Telecom Titans Just Revived Their €20 Billion Battle for SFR—Here’s What Changed
Three major French telecom operators have reignited their pursuit of SFR, the country’s second-largest provider, after their initial offer fell flat last year. Orange, Bouygues Telecom, and Iliad’s Free confirmed they’re back at the negotiating table with billionaire Patrick Drahi’s Altice Group, eyeing a deal that could reshape France’s entire telecommunications landscape.
The consortium started due diligence processes in early January, signaling serious intent this time around. While the three operators haven’t locked down legal and financial terms yet, reports suggest they’re preparing to sweeten the pot with a €20 billion bid—a significant jump from their rejected €17 billion proposal last October. This renewed push could finally reduce France’s telecom market from four major players to three, though regulators will have plenty to say about that.
Why the Second Attempt Matters
The three operators launched their first bid in October to acquire Altice’s assets, valuing them at €17 billion, but Drahi swiftly turned them down without explanation. Now they’re back with a more compelling offer. Under their original proposal, the implied valuation for Altice’s France business as a whole was €21 billion including debt.
The deal structure remains similar to their first attempt. Bouygues Telecom would shoulder 43% of the purchase price, Iliad’s Free would take 30%, and Orange would handle 27%. Each operator plans to cherry-pick different parts of SFR’s operations—Bouygues would grab most business-to-business operations and mobile networks in rural areas, while all three would divvy up consumer services and infrastructure.
What’s at stake? SFR generates roughly €10 billion in annual revenue and serves 14.8 million mobile customers plus 5.9 million fixed broadband subscribers. The target acquisition excludes certain Altice assets like stakes in Intelcia, UltraEdge, XP Fibre, and Altice Technical Services.
👉 Also Read : Telenor Just Cashed Out $3.9 Billion From Thailand After 25 Years—Here’s Why
Drahi’s Debt Dilemma Drives Deal
Patrick Drahi faces mounting pressure to lighten Altice’s crushing debt load. Altice, under pressure to reduce its debt pile, last year reached an agreement with creditors for a financial restructuring that diluted Drahi’s ownership. That restructuring left Drahi with a 55% stake, but selling SFR could provide the cash injection his broader empire desperately needs.
The consortium argues this consolidation would benefit everyone. They claim the deal would accelerate investments in network resilience, cybersecurity, and emerging technologies like artificial intelligence. It would also consolidate strategic infrastructure under French control and maintain competitive pricing for consumers despite reducing the number of operators.
Market reaction showed investor appetite for the deal. Shares in Orange climbed more than 3% and Bouygues rose over 2% in early Paris trading when news broke of the renewed negotiations. Meanwhile, the consortium keeps emphasizing there’s no guarantee talks will succeed—standard cautious language in merger discussions, but particularly relevant given Drahi’s quick rejection last time.
Regulatory Roadblocks Loom Large
Any deal faces fierce scrutiny from competition watchdogs. France has operated with four major telecom operators since Iliad’s Free disrupted the market in 2012 by slashing mobile prices. Reducing that number to three requires approval from both French and European antitrust authorities, who traditionally resist telecom consolidation over competition concerns.
Orange CEO Christel Heydemann acknowledged these challenges last year, noting the consortium needs to build “a clear case for a four-to-three market consolidation” to win regulatory approval. European officials consistently push back against reducing competition, viewing four-player markets as healthier for consumers than three-player ones.
The operators counter that consolidation would strengthen their ability to invest in infrastructure upgrades France needs. Fragmented markets spread investment dollars too thin, they argue, preventing any single operator from making the massive capital commitments required for next-generation networks. Whether regulators buy that argument remains the billion-dollar question.
Financial publication BFM Business first reported the consortium’s readiness to submit a fresh €20 billion bid within two months, citing multiple unnamed sources. Neither the consortium nor Altice has confirmed that specific figure, with all parties declining to comment beyond acknowledging ongoing discussions. For more details on the original bid structure, see Orange’s official announcement.
👉 Also Read : SK Telecom Just Got Hit With a $91 Million Fine—And They’re Not Taking It Lying Down
What Happens to SFR’s Brand?
If the acquisition succeeds, the SFR brand would likely vanish from France’s telecom landscape. Each acquiring operator would absorb their portion of SFR’s operations and customers into their existing networks and services. That would end a telecom brand that’s been part of French telecommunications for decades.
The consumer experience would depend on which operator takes over which SFR customers. Bouygues, Orange, and Free each bring different strengths and network coverage patterns. Customers might see service improvements from joining larger, better-funded networks, or they might face integration headaches during the transition period.
Employees face uncertainty too. The consortium hasn’t detailed staffing plans, though telecoms mergers typically involve workforce rationalization to achieve cost savings. SFR’s roughly 10,000 employees would become a major consideration during negotiations, especially given France’s strong labor protections and union influence.
Infrastructure questions also linger. SFR operates extensive fiber and mobile networks across France. Dividing those assets among three operators without creating service gaps or inefficiencies requires careful planning. The consortium would need to convince regulators their split maintains robust national coverage.
For ongoing coverage of French telecom developments, follow TelecomTV’s access evolution coverage.
Timeline and Next Steps
The consortium launched due diligence in early January 2026, giving them access to SFR’s financial records and operational details. This process typically takes several months, letting potential buyers verify the target company’s value and uncover any hidden problems. Completing due diligence represents the first major milestone toward a potential agreement.
Negotiating legal and financial terms comes next. The parties haven’t reached agreement on these crucial details yet, leaving plenty of room for talks to collapse. Issues like purchase price allocation, debt assumptions, regulatory commitments, and employee protections all need resolution before any deal announcement.
Even if Altice accepts an offer, regulatory review would stretch the timeline considerably. Competition authorities conduct thorough market impact analyses before approving or blocking telecom mergers. That review process could take a year or more, with authorities potentially demanding concessions like selling certain assets or maintaining specific service commitments.
The consortium’s patience will be tested throughout. After Altice rejected their first offer, the three operators stated they remained “convinced of the relevance of their bid” and would “maintain their offer”. They’ve proven willing to persist despite setbacks, but multiple rejections could eventually force them to either dramatically increase their offer or walk away entirely.
Frequently Asked Questions
Why do Orange, Bouygues, and Iliad want to buy SFR?
The three operators seek greater scale to strengthen their financial positions and accelerate infrastructure investments. They argue consolidation would help them compete more effectively while improving network quality, cybersecurity, and emerging technology deployment across France. Acquiring SFR’s 14.8 million mobile customers and extensive infrastructure would significantly boost each operator’s market position.
How much are they offering for SFR this time?
Reports indicate the consortium plans to bid around €20 billion for Altice France, up from their rejected €17 billion offer last October. However, the operators haven’t officially confirmed the new figure, stating only that legal and financial terms remain under negotiation. The €20 billion valuation would represent a substantial premium aimed at overcoming Drahi’s previous rejection.
Will regulators approve reducing France’s telecom operators from four to three?
Approval remains highly uncertain. European and French competition authorities traditionally resist telecom consolidation, viewing four-player markets as healthier for consumer choice and pricing. The consortium must convince regulators that consolidation benefits outweigh competition concerns. Orange’s CEO previously acknowledged building this regulatory case would prove difficult, making approval far from guaranteed.
What happens to SFR customers if the deal goes through?
SFR customers would transfer to one of the three acquiring operators based on how the consortium divides operations. Each operator would absorb their portion of SFR’s customer base into existing networks and services, likely ending the SFR brand. Customers might experience service changes, pricing adjustments, or network upgrades depending on which operator takes them over and how smoothly integration proceeds.
