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By Mathieu Rosemain and Aislinn Laing<\/strong>
PARIS\/MADRID: Orange<\/a> and MasMovil<\/a> have signed a binding agreement to combine operations in Spain in a deal valuing the merged entity at close to $19 billion, the two telecoms firms said in a statement on Saturday.
The merger creates a heavyweight spanning mobile and broadband<\/a>, posing a challenge to top player Telefonica<\/a> and analysts say possibly opening the way to similar alliances in markets such as Italy, Portugal and the UK.
The merger of the second and fourth largest telecoms operators respectively also leaves third-ranked Vodafone<\/a> stranded, albeit the beneficiary of a more consolidated market that is expected to reduce competition and boost operators' profitability.
The tie-up is expected to test the European Commission<\/a>'s appetite for consolidation. It has previously opposed deals that reduce the number of players from four to three in major markets.
Spain's mobile market is a four-way fight with Telefonica<\/a>'s Movistar brand holding a 28.24% share, Orange<\/a> 22.91%, Vodafone<\/a> 22.26% and MasMovil<\/a> with 20.55%, data from market regulator CNMC showed in March.
The Commission's response will also reveal whether it is willing to favour a market structure with fewer operators and potentially higher investments on infrastructure - as lobbied for by industry<\/a> - or if it will stick to a consumer-centric stance marked by fierce competition and low prices.
The merger in Spain is based on an enterprise value of 18.6 billion euros ($19 billion), the companies said in the statement, including 10.9 billion for MasMovil and 7.8 billion for Orange Spain.
The merged entity would generate more than 7.3 billion euros in annual revenue and more than 2.2 billion euros of annual core operating profits, they said.
The combined joint venture will be controlled equally by Orange and MasMovil. A 6.6 billion-euro debt package will finance the transaction.
It will include a 4.2 billion euro upstream payment to Orange, to make up for its lower valuation as compared to MasMovil, given its higher level of debt.
The deal includes a two-year lock-up provision that prevents Orange and MasMovil from selling their shares, a spokesperson for Orange said.
The aim is to have a possible initial public offering (IPO) after a lock-up period, the spokesperson said.
Orange will have a pre-emptive right to buy the shares owned by MasMovil in the joint venture following the lock-up period, the Orange spokesperson said, allowing it to take control of the entity and consolidate it in its accounts.
The transaction is subject to approval from EU antitrust authorities. It is expected to close in the second-half of 2023 \"at the latest\".
Orange is controlled by the French state through a 23% stake, while MasMovil's parent is London-based Lorca JV Co, a holding majority owned by buyout funds KKR, Providence and Cinven.
($1 = 0.9794 euros)
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橙色和MasMovil签署19美元左右合并交易在西班牙
合并创建一个重量级跨越移动和宽带,构成挑战顶级球员Telefonica和分析师表示可能打开方式类似的联盟在意大利等市场,葡萄牙和英国。
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由马修Rosemain Aislinn莱恩
巴黎/马德里:橙色和MasMovil在西班牙签署了一份具有约束力的协议将操作交易评估合并后的实体在接近190亿美元,这两家电信公司周六在一份声明中说。
合并创建一个重量级的跨越移动和宽带对顶级球员,构成挑战西班牙电话公司分析师表示,可能打开方式类似的联盟在意大利等市场,葡萄牙和英国。
合并分别为第二和第四大电信运营商也使得第三沃达丰(Vodafone)困,尽管受益人的巩固市场,预计将减少竞争和提高运营商的盈利能力。
合并预计将测试欧洲委员会对整合。它曾反对交易,减少玩家的数量从4个到三个主要市场。
西班牙的手机市场是一个四通战斗西班牙电话公司的Movistar公司品牌持有28.24%的市场份额,橙色22.91%,沃达丰(Vodafone)22.26%,MasMovil为20.55%,市场监管机构的数据显示,3月份有色。
委员会也将揭示的反应是否愿意支持与更少的运营商市场结构和潜在的高投资基础设施——游说行业——或者如果它将坚持以消费者为中心的立场,激烈的竞争和较低的价格。
合并在西班牙是基于一个企业的价值186亿欧元(190亿美元),该公司在声明中说,其中包括109亿MasMovil和78亿年西班牙为橙色。
合并后的实体将产生年收入超过73亿欧元,超过22亿欧元的年度核心营业利润,他们说。
合并后的合资企业将被橙色和MasMovil控制同样。6.6欧元债务计划将金融事务。
它将包括上游支付42亿欧元的橙色,以弥补其低估值MasMovil相比,鉴于其更高的债务水平。
协议包括两年禁售条款,防止橙色和MasMovil出售自己的股票,橙色的发言人说。
目标是有可能的首次公开发行(IPO)锁定期后,这位发言人说。
橙色会先发制人购买股票的权利归MasMovil在禁售期后的合资企业,橙色的发言人表示,允许它控制实体和巩固它的账户。
此次交易是受欧盟反垄断当局的批准。它预计将在2023年下半年完成“最迟”。
橙色是由法国政府通过控制23%的股份,而MasMovil的父母是伦敦洛尔卡合资有限公司持有多数股权的收购基金KKR,普罗维登斯和Cinven。
(1美元= 0.9794欧元)
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