8 Mar, 2022 @ 13:57
1 min read

Orange and MasMovil announce merger plans to create biggest mobile operator in Spain

EU could block merger in Spain between mobile phone giants Orange and MasMovil
EU could block merger in Spain between mobile phone giants Orange and MasMovil

ORANGE and MasMovil have formally announced their intention to merge their businesses in Spain.

It would make them the largest mobile/telecoms operator in the country and informal talks have been going on for a year.

Such a merger would be subject to approval by competitions regulator, the CNMC.

The 50-50 venture is valued at around €19.6 billion.

The combined entity would generate annual revenues of more than €7.5 billion.

The new company would have over 20 million mobile customers and 7 million fixed-line subscribers.

Orange CEO Stephane Richard said: “I look forward to creating this joint-venture with MasMovil, building on our existing successful collaboration, to become a stronger player capable of making the investments required to develop the Spanish market.”

MasMovil CEO, Meinrad Spenger, said: “The combination of Orange and Masmovil would be beneficial for the consumers, the telecom sector and Spanish society as a whole.”

Competition in the mobile market is very fierce in Spain with consumers regularly bombarded by ‘cold calls’ from the major firms pleading for them to leave their current service provider.

Orange, Vodafone and Telefonica have all seen their revenues slide in recent times.

The carriers have repeatedly called for market consolidation to reduce competition and boost operators’ profitability at a time they need money to invest into the rollout of 5G mobile telecom infrastructure.

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Alex Trelinski

Alex worked for 30 years for the BBC as a presenter, producer and manager. He covered a variety of areas specialising in sport, news and politics. After moving to the Costa Blanca over a decade ago, he edited a newspaper for 5 years and worked on local radio.

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