Bouygues in exclusive talks to take over La Poste Telecom

Source: Bouygues Telecom

France’s Bouygues Telecom is now in exclusive talks to acquire 100% control of France’s leading MVNO and number five mobile player overall La Poste Telecom for €950 million.

Bouygues Telecom is also set to strike an exclusive distribution agreement for La Poste mobile services with la Poste, La Banque Postale and La Poste Telecom.

La Poste Telecom is 51% owned by La Poste and 49% by Altice France-owned SFR, which, having a veto, will have agreed to the sale.

Acquiring La Poste Mobile will give Bouygues Telecom an additional 2.3 million mobile customers and will enable it to distribute services via La Poste.

La Poste Telecom employs about 400 people and posted revenues of €300 million in 2023.

La Poste Telecom has an exclusive wholesale agreement with SFR, which is set to expire in 2026. After that date, customers will be migrated to the Bouygues Telecom mobile net.

Bouygues Telecom said it would not need to make any additional investment as part of the deal but that it would incur some integration costs in 2025-26. It said it expected La Poste Telecom to contribute €140 million a year to EBITDAaL from 2028.

Develop fixed-line offering

Bouygues Telecom said that the combination of the two would not only enable La Poste Telecom to develop its mobile footprint but would enable it to create a new fixed-line offering to complement it.

“Bouygues Telecom is pleased with this strong strategic partnership project with La Poste Group. This long-term agreement, favourable to both parties, rests on our groups’ common vision and values, which are founded on closeness, trust and respect,” said Bouygues Telecom president Edward Bouygues.

“Bouygues Telecom is delighted with this operation and partnership project with La Poste, thanks to this agreement, Bouygues Telecom will be able to grow its client base and reinforce its position in mobile and fixed in leaning on La Poste’s distribution network across the country. Bouygues Telecom will bring to La Poste Mobile its expertise and the quality of its fixed and mobile infrastructure, on which La Poste Mobile wil be able to rely to continue its development,” said Benoît Torloting, CEO of Bouygues Telecom.

The agreement between the pair ends a period of speculation about which of France’s three other mobile and fixed-line players – Bouygues Telecom, Free and Orange – would strike a deal. SFR, the minority owner of La Poste Telecom, was reported to be inclined to sell rather than attempt to acquire the operator itself following La Poste’s decision to sell, given that owner Altice is currently more focused on selling assets to reduce its debt pile than in acquiring new ones.