MásMóvil and Orange are negotiating a merger in Spain that will change the telecommunications scenario in one of the largest Spanish-speaking markets in the world.
The deal will leave two other brands in trouble: Vodafone and Movistar.
Vodafone, because for a long time it was one of the options being considered as a potential ally of MásMóvil. He even got listed on the local stock exchange with that idea.
Movistar, because it will no longer be the largest operator in the market to make way for the company that emerges from the new alliance.
In Spain they are already talking about the largest consolidation operation in the telemarketing market in the history of that country.
According to the European media, Orange and MásMóvil are going to agree on a merger through a joint-venture valued at no less than 19,650 million euros (about 21,400 million dollars).
This merger could be, strictly speaking, a purchase, since Orange, by going public in the near future, could have the right to control the majority shareholding of the new company.
In this way, what for now is shown as a company, could be seen with another headline: Orange buys MásMóvil.
How will the Spanish market be with the merger of MásMóvil and Orange
In this context, while Vodafone would be almost left out of everything, the biggest loser will be Telefónica, operator of the Movistar brand and which at this time has a high percentage of the market share of lines and customers.
According to official data, in 2021, Movistar had 29 percent of the mobile phone market in Spain and 37% of the fixed broadband market.
The company that will be born from the merger between MásMóvil and Orange will change the Spanish market. The new firm will control 43 percent of the mobile market, with Movistar second with 29 percent and Vodafone third (22 percent). The so-called virtual operators will have the remaining 5 percent.
Regarding fixed broadband lines, the giant that emerged from the union of MásMóvil and Orange will control just over 42 percent of the market.
Second will be Movistar (36 percent) and third Vodafone (19 percent).
[Noticia en evolución]