Orange, Masmovil to Create $21 Billion Spanish Telecom Unit
- Talks for a consolidation have been ongoing in Spain
- The new venture would be valued at 19.6 billion euros
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Orange SA and Masmovil Ibercom SA have entered exclusive merger talks in an attempt to consolidate the Spanish telecom market, in a deal that would give the combined company a total enterprise valuation of 19.6 billion euros ($21.3 billion).
The new company would take the form of a 50-50 joint venture, co-controlled by Orange and Masmovil, according to a statement Tuesday. Masmovil carries a debt of around 6 billion euros, according to a spokesperson, which will imply a cash payment being made to Orange to balance the merger.