Press release
Orange and MASMOVIL complete transaction to form the leading operator in Spain in terms of customers
Press Release
Paris and Madrid, 26 March 2024
Orange and MASMOVIL complete transaction to form the leading operator in Spain in terms of customers
- The 50:50 Joint Venture between Orange Spain and MASMOVIL starts operations from today and will bring substantial benefits to Spanish consumers and enterprises.
- The Joint Venture is expected to generate synergies of more than 490m euros / year from four years after closing onwards.
- Jean François Fallacher has been appointed non-executive Chairman of the JV and Meinrad Spenger as its CEO.
Orange and MASMOVIL announce today the creation of a new Joint Venture, completing the agreement to combine their operations in Spain1. Orange and MASMOVIL’s shareholders each own a 50% stake of the JV, with equal governance rights in the combined entity.
With over 37 million broadband and mobile lines, the new entity becomes the leading player on the Spanish telecoms market in terms of customers, with the ambition to lead the market in talent, user
experience, innovation, environmental and social impact, and fiber and mobile coverage. Its formation creates a sustainable player with the financial capacity to continue investing in
next-generation networks for the benefit of the market, consumers and enterprises in Spain.
According to revised estimates, the new company is expected to generate synergies of more than 490m euros per year by the fourth year after closing. Based on preliminary closing accounts, the
respective proceeds at closing will be approximately €4.4bn for Orange and approximately €1.65bn for MASMOVIL shareholders.
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The companies (Orange Spain and MASMOVIL) will operate as a single entity: the accounts of both companies will be consolidated at the level of a newly registered legal entity (the JV). As planned, the new company will be operational from today.