Orange has announced a joint agreement to acquire SFR, France’s second-largest telecommunications operator, in a transformational transaction that will significantly reinforce Orange’s leadership position in the French market and across Europe. Orange’s share of the total enterprise value of 20.35 billion euros amounts to approximately 5.6 billion euros, representing roughly 27% of the total, subject to closing adjustments. The signing of definitive legal documentation is expected in the second half of 2026, with completion potentially occurring in the second half of 2027 following required regulatory approvals, including from competition authorities.
Through the transaction, Orange will acquire approximately 4 million mobile customers — an 18% increase in its French customer base — and 1 million fixed broadband customers, an 8% increase. The acquired customers include a portion of SFR-branded convergent and non-convergent customers, all of SFR’s prepaid customers, and all customers of the Coriolis, Syma, and Réglo brands, representing approximately 1.7 billion euros in revenue and 0.6 billion euros in EBITDAaL in 2025. The deal also includes an additional 47 MHz of spectrum representing 31% of SFR’s portfolio, cementing Orange’s position as France’s leading operator in terms of spectrum with a total of 221 MHz — a critical asset for continued 5G network deployment nationwide.
Expected cost synergies from the acquired assets will exceed 0.5 billion euros per year on a run-rate basis from five years after closing, driven by infrastructure and network optimization, IT and support function efficiencies, and distribution asset optimization. Once synergies are achieved, EBITDAaL from the acquired assets would contribute approximately 0.9 billion euros annually to Orange France’s accounts. Estimated integration costs will total 1.3 billion euros spread over five years. The transaction will be financed through debt, with Orange confirming its medium-term objective of maintaining approximately 2x IFRS leverage and a progressive dividend increase toward a floor of 0.85 euros per share in 2028. The Consortium has committed to ensuring employment for all staff within the acquired scope until early 2029.
KEY QUOTE:
“Today’s strategic announcement marks a decisive step in our most important market. This agreement is set to reinforce Orange’s leadership position in France and in Europe and will support the ambitions of our Trust the future plan. In an accelerating digital world, France needs operators capable of investing massively and sustainably in infrastructure and digital services. For all customers who will join Orange, this means the promise of access to the best networks, best-in-class customer service, and innovative digital services designed to meet their everyday needs.”
Christel Heydemann, Chief Executive Officer, Orange
