07 March 2024

Orange and MASMOVIL have obtained clearance from the European Commission to combine their operations in Spain, forming a 50-50 joint venture (JV) co-controlled by Orange Spain and MASMOVIL (LORCA JVCO).

This deal will create a single operator with the scale to invest in 5G and fibre, benefiting consumers and businesses across Spain. The transaction does not include TOTEM Spain and MASMOVIL Portugal.

The combined operator would serve over 7.3 million fixed customers, over 30 million mobile service users, and over 2.2 million TV customers. Mobile services in Spain include prepaid, contract, and mobile broadband voice and data packages.

The combined entity will manage network and IT assets to ensure nationwide coverage in FTTH and 4G/5G. Financially, the venture is projected to generate revenues exceeding Euro7.4 billion, with an EBITDAaL of over Euro2.3 billion and an enterprise value of Euro18.6 billion.

As part of the merger under a remedy package, 60MHz of spectrum assets will be divested to Digi, pending approval from the Spanish Government, and an optional national roaming agreement at market conditions will be proposed.

Orange and MASMOVIL plan to complete the transaction by the end of the first quarter in 2024. Until all closing conditions are met, both companies will continue to operate independently.

With its FTTH coverage in Spain, reaching over 29 million marketable households, and 3G, 4G, and 5G mobile networks covering 98.5% of the Spanish population, MASMOVIL employs a hybrid strategy combining its own infrastructure with that of third parties. MASMOVIL has also launched 5G services, now available in over 2,200 cities across Spain, serving close to 16 million customers by the end of the first nine months of 2023.