Paris, France – French telecom giant Orange (ORAN.PA) has announced a non-binding agreement to acquire the remaining 50% stake in its Spanish subsidiary MasOrange for approximately 4.25 billion euros ($4.96 billion) in cash, according to sources close to the deal.

The acquisition, which involves stakes currently held by U.S. private equity firms KKR (KKR.N), Cinven, and Providence, will consolidate Orange’s control over MasOrange and strengthen its position in the Spanish telecom market, one of the fastest-growing economies in the euro zone. Analysts highlight Spain’s booming tourism sector, strong labor market, EU funding, and lower energy costs as drivers behind the investment.

Deal Timeline and Regulatory Approvals

Orange plans to sign a binding agreement by the end of 2025 and aims to complete the transaction in the first half of 2026, pending regulatory approval and finalization of deal terms. A spokesperson confirmed that Orange has sufficient liquidity, including 4.4 billion euros received from the initial merger, to finalize the acquisition while maintaining its dividend policy.

Background on MasOrange

MasOrange was created last year through the merger of Orange’s previous Spanish unit and the smaller rival MasMovil, which was controlled by KKR, Cinven, and Providence. The combined entity has since surpassed Telefonica (TEF.MC) in client numbers, becoming Spain’s largest telecom operator by subscriber base.

This move is part of Orange’s broader strategic push in Europe. On October 14, 2025, Orange, together with Bouygues Telecom (BOUY.PA) and Iliad’s Free, submitted a non-binding 17 billion euro offer for most of Altice France’s assets, valuing the company at 21 billion euros. Altice France rejected the bid the following day.

Strategic Implications

The full acquisition of MasOrange enables Orange to streamline operations, optimize synergy benefits, and expand its footprint in Spain, which remains a key growth market within the EU. The deal also highlights ongoing telecom sector consolidation in Europe as major players look to strengthen their market positions amid growing competition.

With regulatory approvals pending, analysts expect the Orange-MasOrange deal to serve as a benchmark for future European telecom mergers and acquisitions, signaling Orange’s long-term commitment to the Spanish and broader European markets.