Bouygues Telecom Approved to Acquire La Poste Telecom in Deal

22 Aug, 2024

Bouygues Telecom Approved to Acquire La Poste Telecom in Deal

Bouygues Telecom has received approval from the French Competition Authority for its acquisition of La Poste Telecom. The Authority confirmed that the deal, which would grant Bouygues Telecom full ownership of La Poste Telecom, poses no risk to competition. La Poste Group, which operates France’s mail service and holds a 51% stake in La Poste Telecom, is set to transfer its telecom assets to Bouygues Telecom.

The remaining 49% of La Poste Telecom is owned by French rival SFR. The Authority noted that La Poste Telecom’s limited market share means the acquisition will result in minimal change to market competition. Despite Bouygues Telecom's anticipated benefit from La Poste's extensive physical presence in France, the continued preference for online and telephone service purchases ensures a competitive market.

SFR, which opposes certain aspects of the deal, is committed to providing network access to La Poste Telecom until the end of 2026. The acquisition requires SFR’s agreement as it holds a pre-emption right on La Poste Telecom shares. Bouygues Telecom announced in February its exclusivity agreement with La Poste Group to acquire La Poste Telecom for €950 million, aiming to bolster its mobile customer base of around 2.3 million.