A consortium led by Bouygues Telecom has entered exclusive talks to acquire Patrick Drahi's SFR telecoms unit in a deal valuing the company at €20.4bn, surpassing the initial €17bn offer rejected in October. The joint bid from Bouygues, Orange, and Iliad would divide SFR's fixed, mobile, and business services among the three companies, with Bouygues taking 42% of the value, Iliad 31%, and Orange 27%.

The proposed acquisition comes as European regulators plan significant merger rule relaxations to strengthen the EU economy amid growing competition from US and Chinese tech giants. Telecoms groups have long argued they face pressure from bandwidth-heavy tech companies that don't contribute to network maintenance, creating an uneven playing field in a market more fragmented than the US or China.

For Drahi, the SFR sale represents another major divestment in dismantling his debt-laden telecoms and media conglomerate that once stretched across multiple countries. The acquiring companies have until May 15 to negotiate a final deal, though labour unions at SFR have raised concerns about potential mass layoffs, and the French government remains vigilant about possible price increases for consumers and businesses.