The MásMóvil group and Orange Spain finally join forces in their new Joint Venture with which they become the leading operator in our country. According to a press release, the joint venture is expected to generate synergies of more than €490 million per year from the fourth year after the closing of the transaction onwards.
The MásOrange merger arises from an agreement between both operators to combine their operations in Spain. Thanks to the sum of their forces, the resulting entity has become the leader in the telecommunications market in the Spanish territory by number of clients. This is because, between broadband and mobile, companies have more than 37 million lines.
The joint venture between Orange España and MásMóvil has more ambition and does not want to remain alone as the leader in number of customers. According to them, they also aim to reach the top in terms of talent, user experience, innovation, social and environmental impact and fiber and mobile coverage.
«It is a great honor and an enormous responsibility to offer service to our more than 30 million customers in Spain – confirmed Meinrad Spenger, CEO of the new Joint Venture. We will strive to ensure that they continue to be the most satisfied customers in our country. With this Joint Venture, the Spanish telecommunications market now has a stronger company, with the capacity to innovate and invest and to become the trusted partner for our individual and business clients.
In the statement, they detail that the shareholders of Orange and MásMóvil will each own a 50% stake with the formalization of this synergy. That is, the shares will be distributed equally, with the same governance rights for both parties.
According to Christel Heydeman, Orange’s new executive director, he considers that the merger of his operator in Spain with MásMóvil is “an important step in the development of Orange’s long-term strategic plan in Europe.” “By creating a stronger and more sustainable operator, the Joint Venture launched today will help drive innovation and investment in high-speed broadband and digital services in Spain,” the professional clarifies. This is clearly a step positive advancement of our overall vision of a strong and prosperous European telecommunications industry.”
MásOrange’s forecasts
Starting today, Orange España and MásMóvil will operate as a single registered legal entity. According to revised estimates, together they expect to generate synergies of more than 490 million euros annually starting in the fourth year after closing.
With the data from the preliminary closing accounts, the respective income at closing will be around 4.4 billion euros for Orange shareholders and approximately 1.65 billion euros for those of MásMóvil.
New positions from the merger
In addition, the Board of Directors of Join Venture has confirmed who will occupy some of the most important positions:
- Non-executive Chairman – Jean François Fallacher, until now CEO of Orange France and former CEO of Orange Spain (September 2020 – April 2023). Due to his extensive experience in the Spanish market
- Executive Director – Meinrad Spenger, who had been CEO of MásMóvil since 2006
- Secretary of the Board of Directors – Alberto Castañeda, who had held the same position at MásMóvil since 2006
- Chief Financial Officer (CFO) – Ludovic Pech, until now CEO of Orange Spain
- Director of Operations (COO) – Germán López, until now general director of MásMóvil
