Orange and MASMOVIL have received clearance from the European Commission to combine their operations in Spain. As previously stated on July 23, 2022, the combined activities of Orange Spain and MASMOVIL will take the form of a 50-50 joint venture, co-controlled by Orange and MASMOVIL (LORCA JVCO), with equal governance rights in the combined entity. This Joint Venture between MASMOVIL and Orange will create a leading operator of the Spanish market in terms of customers, user experience, talent, fiber and mobile coverage and a sustainable player with the financial capacity to continue investing in the development of a leading telecom infrastructure in Spain.

Both parties would convert into a leading operator, bringing together the assets, capabilities and teams of the two companies in Spain to serve +7.3M fixed customers, +30M mobile services and +2.2M TV customers. The Joint Venture would manage important network and IT assets to assure a nationwide coverage both in FTTH as well as 4G/5G. In financial terms, the combined entity would become a stronger and solid market player with estimated revenues of above EUR7.4 billion and EBITDAaL of over EUR2.3 billion, with an enterprise value of EUR18.6 billion and expected synergies of more than EUR450 million per year (from year four post-closing).

As part of its proposed package of remedies, the parties have agreed to divest to Digi as remedy taker 60MHz of spectrum assets (pending approval from the Spanish Government) and to propose an optional national roaming agreement at market conditions. Until all closing conditions are satisfied, which is expected by the end of this first quarter in 2024, the two companies will continue to operate independently. Until all closing conditions are satisfaction, which is expected by the end of this first quarter in 2024.

the two companies will continue to operates independently.