Orange and Bouygues have confirmed that they are conducting preliminary discussions with a view to consolidation. Orange said in statement that the talks are not limited by any particular calendar and that they hold no commitment to any particularly predefined outcome. It adds that it will act solely in the interest of its shareholders, its employees and customers and will be particularly vigilant with regard to the value created through any resulting project.
Bouygues confirmed that a confidentiality agreement had been signed by the two companies as they look at possible options. It said more information will be disclosed in due course according to the progression of these discussions.
The confirmation follows reports since at least early December 2015 that the two were considering a merger of their telecom businesses in France. This may also include Bouygues' media assets in France, such as TV channel TF1. Orange has been saying for some time that consolidation is needed in the French market, since the entry of Free Mobile as the fourth mobile operator led to a drastic fall in prices. An attempt last year by Numericable-SFR to acquire Bouygues Telecom and sell part of their combined assets to Free was rejected by Bouygues. A merger between Orange and Bouygues would eliminate the country's third-largest mobile operator and a significant player on the fixed broadband market, while strengthening Orange's market lead.
Source: http://www.telecompaper.com/news/orange-bouygues-telecom-confirm-merger-talks--1121365