Orange and MásMóvil have signed an agreement to combine their operations in Spain, following the exclusive negotiations that began in March.
The €18.6 billion deal, which values Orange España at €7.8 and MásMóvil at €10.9 billion, is subject to regulatory approval and is expected to close during the second half of 2023 at the latest.
The merger will take the form of a 50-50 joint with equal governance rights.
The agreement also includes a right to trigger an IPO under certain conditions for both parties after a defined period and, in such a scenario, an option for Orange to take control of the combined entity at IPO price.
The pair said that the joint venture will create a sustainable player with the financial capacity and scale to continue investing in infrastructure in Spain.
The parties have identified potential synergies in excess of €450 million per annum to…