Orange is poised to take complete ownership of MasOrange, its joint venture in Spain, by acquiring the remaining 50% stake. The non-binding agreement, valued at €4.25 billion in cash, marks a significant step for the telecommunications giant. The company aims to finalize a binding agreement by the close of the year, with the transaction anticipated to conclude in the first half of 2026, pending standard regulatory approvals.
According to Orange, the funding for this acquisition will not impact its current dividend policy. MasOrange was formed in 2024 through the merging of Orange España and MásMóvil. Now, it stands as Spain’s largest operator in terms of customer base, boasting approximately 31 million mobile subscribers and 7 million fixed-broadband subscribers.
Securing complete ownership will reinforce Orange's foothold in its second-largest market and effectively shelve earlier discussions about a potential MasOrange IPO. The stake will be acquired from funds managed by KKR and Cinven, along with Providence, who collectively hold the current 50% of MasOrange. Orange states that bringing the JV in-house will streamline governance and facilitate investments in 5G, fiber infrastructure, and converged service offerings, particularly as competition intensifies with industry players like Telefónica and Vodafone Spain. The deal remains subject to regulatory and antitrust approvals.
The original article quoted that "Orange says the transaction can be funded without changing its dividend policy."