In a development that could reshape the landscape of France’s telecom market, Bouygues Telecom is inching closer to completing its acquisition of La Poste Telecom. This move has received a thumbs-up from national competition regulators, who have deemed the deal unlikely to disrupt market dynamics significantly.
La Poste Group, the entity responsible for France’s postal services and telecom operations, already holds a 51% stake in La Poste Telecom. The remaining 49% is held by French telecom competitor SFR.
The Competition Authority’s recent statement highlights that La Poste Telecom’s relatively modest market share means the acquisition won’t notably alter the competitive balance. “Given the limited scope of La Poste Telecom’s market footprint,” officials explained, “we do not foresee any major changes in the competitive structure of the market.”
While the physical presence of La Poste in France might offer Bouygues Telecom some strategic advantages, the regulators pointed out that most consumers now opt for telecom services online or over the phone. This trend, they argued, keeps the competition alive and prevents any single player from dominating through a network of physical locations.
Despite the Competition Authority’s approval, the acquisition still hinges on SFR’s consent. SFR, which opposes certain aspects of the deal, has pledged to continue providing network services to La Poste Telecom until the end of 2026. Additionally, SFR holds a pre-emption right, giving it priority to purchase La Poste Telecom shares should they become available.
Earlier this year, Bouygues Telecom secured an exclusivity agreement with La Poste Group to acquire La Poste Telecom for €950 million. This deal is seen as a strategic move to bolster Bouygues Telecom’s customer base, which currently stands at approximately 2.3 million individuals.
With the regulatory green light in hand, the final step in this corporate chess game will be to resolve any outstanding issues with SFR and finalize the acquisition, potentially reshaping the competitive landscape of France’s telecom sector.
(Source: Fast Mode | Market Screener | Mobile Europe)
