Orange Trying To Buy Its Rival Bouygues Telecom
Orange Telecom has recently considered steps which may lead to it buying out its rival company, Bouygues. In a recent turn of events, the French Telecom company has announced its intention to fuse the unconsolidated cellular phone market by incorporating over 500 million potential customers across the European Union through regulated price reductions. Lower prices are promised as per their plan across multiple platforms including mobile services, cable television and fixed-line services. The French government, which co-owns Orange Telecom, gives the plan a thumbs-up while aiming to exponentially grow its market base which totals up to a total of 260 million customers worldwide. For more information on Orange Telecom’s acquisition plan, you can reach Orange telephone number at 0844 8003 117.
In a previous statistical analysis, it was seen that Orange garnered a customer base of around 28 million people in France itself while Bouygues reached 14 million. The resulting acquisition would lead to enabling Orange to invest into infrastructural development and upgrading of assets resulting in better connectivity and high speed internet services across the subcontinent. This would boost the organization’s growth and aide in paralleling against other countries including Japan and USA.
Local television news estimated a total of over 10.9 billion Euros for the acquisitioning. The plan had seen a delay in effect in the past years, keeping into consideration the popular concern about increased prices and limitation to customer choices if Orange obtains total control over telecommunications. The 8 of 10.9 billion pounds is suspected to be paid to Bouygues in form of company shares and the remaining amount would be likely paid in cash, paving a sizable stake for Bouyges in Orange’s share.
There was a hike in the shares of both Orange and Bouygues with 0.7 percent to 15.31 pounds and 0.4 percent to 37.30 pounds respectively. Industry analysts have predicted Orange to have to lay off its assets worth billions of dollars to acquire Bouygues and obtain the approval of antitrust authorities. Over the past years, Bouygues has come under the hammer before and has been much talked about for being potentially taken over.
Bouygues made attempts to acquire SFR in the year 2014 which resulted in intense competition with rival competitors, Altice from Amsterdam. The attempt resulted in Altice winning the stakes over Bouygues and SFR going to Altis at over 17 billion pounds. Bouygues rejected buy-outs from Altice at a later time with Altice offering 10 billion pounds for its shares. Analysts have maintained that this merger would have been an advantage had Altice taken over Bouygues. The resulting merger could have overtaken Orange as the largest network provider in France.