Telenor-French telco-consortium signs MoU to take France to three operators-06/08/2026

Research evidence excerpt

Telenor-French telco-consortium signs MoU to take France to three operators-06/08/2026

Telenor

NEWSFLASH | 8 JUN 2026

French telco-consortium signs MoU to take France to three

operators

The French telco-consortium (Bouygues, Free-Illiad, and Orange) have agreed on a price with Altice France for SFR1 –

France’s second biggest operator. Today’s news was in a sense expected, the larger hurdle is with competition authorities

though, and that process starts now. The consortium promises job security for all employees to YE’28e, but the real

discussion with authorities is likely to be on network investments and price dynamics. Orange say signing of a definitive

legal document is expected in H2’26e and that the full process can close in H2’27e. Yet stress that the deal can fall through.

This process is likely to set the precedence for European telecom consolidation for years to come – see our last flash – and

will likely be a very relevant read-across for Telenor’s ambitions to participate in Nordic consolidation.

Pricing

• The total EV was set to EUR 20.35bn, EUR 5.6bn attributable to Orange (with price adjustment mechanisms going both ways), and Orange

estimates a EUR 0.9bn EBITDAaL contribution after EUR 0.5bn in annual cost savings.

• The deal hence implies an EV/EBITDAaL of 14x for Orange before synergies and 6.2x after. Orange currently trades at 5.9x EV/EBITDA

NTM at FactSet consensus.

Jørgen Weidemann

+47 22 87 88 45, jorgen.weidemann@paretosec.com

Olav Rødevand

+47 22 87 87 30, olav.rodevand@paretosec.com

For disclosures on relevant definitions, methods, risks, potential conflicts of interests etc. and disclaimers please see www.paretosec.com. Investment Recommendations should be reviewed in

conjunction with the information therein.