Signing of a Memorandum of Understanding for the acquisition of SFR

Press release
Paris, 6 June 2026

Signing of a Memorandum of Understanding for the acquisition of SFR

Bouygues Telecom, the Free–iliad Group and Orange (the “Consortium”) announce today the signing of a Memorandum of Understanding with Altice France (the “Seller”) with a view to acquiring SFR, one of the largest industrial transactions in Europe in the telecommunications sector.

The proposed transaction aims to create long-term value for all stakeholders — customers, employees, partners, suppliers and investors — and for France by supporting the continued development of its infrastructure and digital ecosystem.

This transformational transaction would preserve a highly competitive ecosystem and reinforce the sector’s long-term capacity to invest, innovate and anticipate major technological changes. By enabling each operator to scale up and boost their investment capabilities, this transaction is intended to support the development of more resilient, sovereign and high-performing digital and electronic communications services and infrastructure in France.

The Consortium is paying special attention to the social implications of this operation. The success of a project of this scale depends first and foremost on the women and men who know the networks, systems, customers and local areas. Migrating millions of subscribers, infrastructure and systems is a multi-year industrial program. Service continuity for subscribers depends directly on the skills of the SFR teams taken on by the Consortium, which will need their expertise to successfully complete this transformation under the best possible conditions. Furthermore, the Consortium will ensure employment for all the staff of the acquired scope until the beginning of 2029, either by allowing them to continue in their present position or providing them with a job opportunity. All three operators are committed to engaging in constructive dialogue with SFR’s employee representative bodies.

Terms of the Memorandum of Understanding

The proposed transaction is based on a price equating to a total enterprise value of €20.35 billion¹ for the Altice France assets under consideration subject to the closing adjustments, which are:

• a potential earn-out payment of up to €0.65 billion;
• a potential downward price adjustment and exit provisions at the Consortium’s or Seller’s initiative (safety clause), depending on SFR’s financial performance up until the closing of the transaction;

• the usual adjustment mechanisms in relation to debt based on the closing accounts;
• price adjustment mechanisms relating to compliance with the Seller’s commitments up until the closing of the transaction (regulatory and investment commitments).

Break-up fees have also been agreed. They may vary between €0.1 billion and, in case of signing, €2 billion, depending on the initiator of the break-up and the reasons for and timing of the termination of the transaction. These fees would be borne equally by the members of the Consortium, including, under certain circumstances, in the event of termination at the Seller’s initiative.

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