Orange is continuing to roll-out its strategy to expand its reach in the European telco market. After revealing in September its plans to acquire Jazztel in September with a 3.4 billion offer, Orange formalized its intent with an official request to the Spanish authority for financial markets (CNMV – Comision Nacional del Mercado de Valores) that the takeover bid receive the green light.
The impending acquisition is a key component of Orange’s strategy to grow and consolidate their position in the Spanish market, and, eventually, surpass Vodafone. In speaking recently with Reuters, CEO Stephane Ricard discussed the acquisition, adding “We are doing this deal to accelerate our growth in Spain, particularly in fixed-mobile convergent offers,” Orange Chief Executive Stephane Richard said. “The new company will be the incontestable number two in fixed services and third in mobile behind Vodafone, but we think we’ll be able to take second place pretty quickly.”
Jazztel looks to be a good fit for Orange and will certainly help them accelerate their share in the Spanish telco market. Will 1.4 million ADSL lines and 1.1+ million mobile contracts, Jazztel has grown into an important player in the Spanish telco space.
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