Orange and MasMovil have created a new 50-50 joint venture (JV) in Spain. The JV will lead the mobile, FTTH and convergent lines in the Spanish market.
The Spain telecom market size is estimated at $35.02 billion in 2024, and is expected to reach $42.26 billion by 2029, growing at a CAGR of 3.02 percent during the forecast period (2024-2029). Vodafone Spain and Movistar Spain will be under pressure in the wake of the JV between Orange and MasMovil.
Projections indicate substantial synergies exceeding €490 million annually by the fourth year post-closure. Preliminary assessments suggest that Orange shareholders stand to gain approximately €4.4 billion, while MasMovil shareholders are estimated to receive around €1.65 billion upon closure.
Jean Francois Fallacher, former CEO of Orange Spain from September 2020 to April 2023, assumes the role of non-executive Chairman of the new company, leveraging his experience in the Spanish market.
Meinrad Spenger, the longstanding CEO of MasMovil since 2006, steps into the CEO position of the JV. Alberto Castaneda is confirmed as the Secretary of the Board of Directors, with Ludovic Pech and German Lopez securing roles as CFO and COO, respectively.
Meinrad Spenger, CEO of the JV, said: “It is an enormous responsibility to serve our more than 30 million customers in Spain. We are going to try hard to ensure that they continue to be the most satisfied clients in our country.”
Christel Heydemann, CEO of Orange, has emphasized the creation of a robust and sustainable entity, poised to foster innovation and bolster investment in high-speed broadband and digital services across Spain.
The joint venture would bring together complementary businesses to serve more than 7.3 million fixed customers, 30 million mobile services and 2.2 million TV customers.
The JV aims to accelerate its investments in FTTH and 4G/5G, as well as achieving a share in the Spanish market of approximately 40 percent, being the leader in the number of mobile lines, broadband lines and convergent packages.
In financial terms, the JV would become a stronger and solid market player with estimated revenues of above €7.4 billion and an enterprise value of €18.6 billion.
The JV will provide services to more than 7 million fixed broadband customers and more than 25 million mobile customers and will create a sustainable player with the financial capacity and scale to continue investing to foster the future of infrastructure competition in Spain for the benefit of consumers and businesses.
Before the merger, MasMovil Group’s fixed network covers 18 million homes with ADSL and 29.5 million FTTH BUs. Its 4G mobile network covers 98.5 percent of Spain’s population. MasMovil Group has over 15.9 million customers. At year-end 2023, MasMovil Group’s workforce consisted of 1,852 employees. There is no indication about any possible job reduction after completing the merger.
Baburajan Kizhakedath