No comment from Orange on MasMovil merger reports
Orange Spain has declined to comment on reports linking it with a merger with its local rival MasMovil.
Multiple reports have surfaced that Orange would be looking to explore consolidation opportunities with MasMovil – the fourth largest operator in Spain.
However, when contacted a spokesperson for Orange Spain said: "Orange doesn’t wish to comment on the multiple rumours concerning consolidation on the Spanish market."
According to a report from Expansion newspaper, the merger plan could grant 50% in the new company to Orange on one hand and MasMovil’s shareholders (KKR, Cinven and Providence) on the other.
A potential merger between the second and fourth largest operators in Spain could present quite the proposition in the country, challenging Telefonica for the number one spot and leaving Vodafone, which currently sits at number three, behind.
In January MasMovil announced it had exceeded 27 million homes throughout Spain with its fibre optic offering.
The operator’s 5G service is a combination of its own infrastructure an agreement with Orange and last year it announced it had expanded this offering to 39 provinces in Spain.
MasMovil has also been contacted for comment regarding the reports of a possible merger.
Consolidation has been a major theme in the European telecoms landscape over the last year, with a growing belief in the industry that firms are more open to in-country deals to reduce the number of operators in each market.
Last month, it was reported that Vodafone is reported to have explored a possible merger with Three UK with the company’s chief executive telling the Sunday Times: “I’m a firm supporter of consolidation on the right terms.”