Bouygues Telecom, Orange and Free-Iliad have signed a memorandum of understanding to acquire Patrick Drahi’s SFR for €20.35 billion. The trio will split SFR’s consumer mobile, broadband and business units, with Bouygues taking the corporate side. The deal, the largest in France’s telecom history, signals a shift toward a three‑player market.

First bid floated in October at €17 billion, the consortium raised its offer to match the €20.4 billion stated in April, after weeks of negotiation. Drahi, who built a €60 billion debt load, wants to trim liabilities, having already cut Altice France’s debt to €15.5 billion from €24 billion.

Regulators in Paris and Brussels will scrutinize the merger, wary that a collapse from four to three players could raise prices. Yet Paris regulators appear more open, and European authorities recently eased merger rules. If approved, the transaction could finalize in 2027, reshaping France’s telecom landscape.

The split plan assigns SFR’s consumer mobile and broadband customers to Orange and Free-Iliad, while Bouygues keeps the business unit. This structure aims to preserve competition and meet antitrust conditions. The deal, if cleared, will mark the first major consolidation in French telecoms since 2014 and could pressure rivals to rethink market strategy.