Orange and MásMóvil expect to formalize the notification of their merger in Brussels at the beginning of 2023

MADRID, 25 Oct.

Orange and MásMóvil expect to formalize the notification of their merger in Brussels at the beginning of 2023


The CEO of Orange España, Jean-François Fallacher, has assured that the merger of Orange and MásMóvil will be formally notified to the European Commission during the first quarter of 2023, once the pre-notification period ends.

Fallacher has pointed out that until the European Commission makes its first verdict, which usually takes about a month, the French operator will not rule on possible red lines at the level of 'remedies' - conditions imposed by the Commission to approve the operation -- or the future of the 'joint-venture' that the two companies will form.

In addition, the manager has insisted that the firms are competitors and has ruled out eliminating brands from the operator's portfolio until then.

"Until closing, we are competitors with MásMóvil. The only thing I am saying, to summarize, is that the day the 'joint venture' is created there will be 18 brands. What will happen next I cannot say at this time. The competition It will be very big after this 'joint venture', the manager stressed.

Likewise, as previously indicated by the Group's financial director at the conference for analysts, Fallacher stressed that the case of Orange and MásMóvil bears no similarities to CK Hutchison and O2, since MásMóvil is not a relevant player in the market for the infrastructures.

During his speech, Fallacher reiterated that this is not an operation that reduces the number of operators in the Spanish market to three and has argued that the merger will increase competition for Telefónica in the business segment and premium customers.

The third quarter of this year has been the first in which Orange has improved its billing since January 2019, with a growth of 0.2% boosted by the wholesale market, and the growth of roaming, and the sale of equipment, with 875,000 devices sold between July and September.

Until September, the company has entered 3,444 million euros, 2.8% less than in the same period last year, especially due to the fall of almost 10% in revenue from the mobile segment.

The company has highlighted its growth in television, with 1,135 million subscribers, and registering growth of 3% in football and 26% in its series and film packages.

Likewise, the company already has 16.7 million connected real estate units, of which 900,000 are XGSPON fiber, with speeds of up to 10 Gbps. The firm's goal is to reach 16.8 UUII by the end of the year.

Both Fallacher and the director of the firm's residential market, Diego Martínez, have insisted on the ultra-competitive nature of the market and the aggressive level of promotion, despite the drop in portability in the fixed sector. In fact, Martínez has stressed that the total weight of the 'low-cost' with respect to the volume of the market continues to increase.

Martínez has pointed out that between 2019 and 2022 the average prices of the sector have fallen by 22%, with its consequent impact on the income statements of the operators.

Likewise, Orange's calculations indicate that there are around 150 operators in the market that offer combinations of fixed and mobile networks and more than 40 television offers.

On the other hand, Martínez has highlighted that Orange reach an agreement with Mediapro to broadcast the World Cup matches that will not be broadcast openly, considering that the offer is wide enough.