Spanish Government Approves Orange and MásMóvil Merger

The Spanish Government has given the green light to the merger between Orange and MásMóvil. The approval, announced following a cabinet meeting, marks a pivotal step towards the creation of a new market leader expected to commence operations by the fourth quarter of this year.

The decision comes on the heels of the European Commission’s recent clearance of the €18.6 billion merger, further solidifying the path for the consolidation of these telecom giants. Speaking on the approval, José Luis Escrivá, the minister of Digital Transformation, emphasized the potential benefits for consumers, stating, “[With the approval] we will guarantee better services for consumers.”

However, the government’s approval comes with conditions, particularly focusing on ensuring long-term investments from both Orange and MásMóvil. Escrivá highlighted this aspect, underlining the commitment required from the merging entities to bolster infrastructure and service offerings.

Related: EU Approves Spain’s Orange-MasMovil Merger with Conditions

Upon completion, the merger is anticipated to give rise to the largest telecommunications operator in Spain. Luis Escrivá revealed staggering figures, indicating that the combined entity would boast over 30 million mobile customers, in addition to serving more than 7 million broadband customers and over 2 million pay-TV subscribers.

This consolidation is expected to have far-reaching implications, not only in terms of market dominance but also in shaping the competitive landscape and influencing the quality and availability of telecommunications services across Spain. The creation of a formidable player with extensive reach and resources is likely to trigger reactions from competitors and regulatory bodies alike.

While the approval marks a significant milestone in the merger process, it also sets the stage for a period of transition and integration, wherein the newly formed entity will need to navigate regulatory requirements, operational challenges, and strategic decisions to leverage its position as the market leader effectively.

Source: Advanced Television