Orange and Bouygues will continue to discuss during the holidays
The meetings for the purchase of Bouygues Telecom should continue for the coming days.
Actors must find remedies to satisfy the competition authorities.
No winter break in telecoms. And especially not for consolidation. Discussions between Orange and Bouygues Telecom are well underway for the acquisition of the second by the first. "Christmas time is the best time to move forward," says an industry player. Martin Bouygues and Stéphane Richard, CEO of Orange, should use this time to enter the details of a possible marriage. Some speak of an announcement early in 2016 as possible.
"All the planets are aligned," declares one of the protagonists. "The discussions are going well, said a source familiar with the matter. Bouygues is very motivated. "Since the revelation by Bloomberg of ongoing negotiations, no voice was heard to oppose it. The rumor even ran that Patrick Drahi, owner of Numericable, SFR, could again make an offer to raise the stakes. But it was denied.
Among the subjects to adjust the price appears to pay. But also, and above all, competition issues, whereas the new entity would strengthen Orange, already dominant in France. Future group holds around 50% market share in the fixed and mobile. Whatever the authority, in Paris or Brussels, will address the issue, "the case will not go as a letter in the mail," says an expert.
Industrial logic
The passage from four to three operators can only be done if the market competition remains strong, which means "in the three remaining operators" that there is "one that is driven by a strategy of conquest new clients, "warned on France Info Bruno Lasserre, President of the Competition Authority. The regulatory authorities should also impose asset disposals.
The question is whether the operation can keep his strategic sense if they are too important. Furthermore, if one understands the interest in small Bouygues Telecom lean against a big, some wonder about the industrial logic for the Orange giant still grow on its own market. "If the competition authorities suspect that it is just to eliminate a competitor and improve margins, they will oppose the operation," notes one observer.
Both groups should link the meetings this week. Wednesday night, some believed attend one of them at the wishes of the French Federation of Telecoms (FFT). The main protagonists of the operation shared a long private conversation with the Minister of Economy, Emmanuel Macron, holding a glass of champagne in hand. "The champagne is classic for a banker when we celebrate a deal," smiled an industry leader, referring to the past of Emmanuel Macron Rothschild.