Orange SA has entered into a non-binding agreement to acquire the remaining 50% stake in its Spanish joint venture, MasOrange, in a deal valued at €4.25 billion. Once finalized, the move would give the French telecom titan full ownership of Spain’s largest telecommunications operator by customer count.
The agreement, announced on 31 October, is with Lorca, a consortium of private equity investors that holds the 50% stake. In its press release, Orange said it plans to finalize a binding agreement by the end of this year, while the transaction is expected to close in the first half of 2026, following consultation with employee representative bodies and subject to receiving the necessary regulatory approvals.
This acquisition would solidify Orange’s presence in Spain, which represents its second-largest market in Europe.
MasOrange was formed from an €18.6 billion merger deal that combined Orange’s Spanish operations with MásMóvil. Lorca, which includes private equity firms Cinven, KKR & Co., and Providence Equity Partners, had previously acquired MásMóvil in 2020 for €3 billion before entering the 50:50 joint venture with Orange. As part of this merger, Orange received a €4.4 billion cash payment, which strengthened its balance sheet and liquidity.
For the private equity partners, the sale marks a profitable exit. Providence Equity Partners, which first invested in MásMóvil in 2016, reportedly stands to generate more than eight times its original investment from the transaction.
The move comes amid a broader trend of consolidation within the European telecom industry. Operators have faced pressure from intense competition and the high costs associated with building and maintaining advanced infrastructure, such as extensive fiber-optic networks. As a result, European telecom companies have been increasingly pursuing mergers and acquisitions to navigate this challenging landscape.
Spain is considered one of Europe’s most competitive telecom markets. While the MasOrange merger created the country’s largest operator by customer base, competition has remained fierce. The country has one of Europe’s most extensive fiber-optic broadband networks, but competitors often share the same infrastructure, which drives down prices and increases competition.
By taking full control of MasOrange, Orange aims to streamline its operations, pursue greater pricing and network efficiencies, and better position itself against major rivals like Telefónica SA and Vodafone. The acquisition signals Orange’s confidence in the long-term potential of the Spanish market, despite ongoing pricing pressures.
