The French telecom company Orange and a local rival Bouygues Telecom has withdrawn their proposed acquisition deal as the discussion failed to reach a mutual consent. The deal was worth $11.4 billion.
A primary reason for faltering the deal is said to be an apprehension raised by the antitrust authorities who questioned whether further industry consolidation would be in interest to the customers. However, the companies have denied this and said it’s the failure to reach terms on deal that led to the withdrawal of deal.
“In a market where the possibility of consolidation is now ruled out for the long term, Bouygues Telecom will continue its stand-alone strategy,” the company said in its statement.
Orange also announced that it plans to continue to look for Europe, as well as to grow in Africa and the Middle East. “We have a clear strategy through 2020 and French consolidation was never a prerequisite for it,” the news agency Bloomberg quoted the Head Stephane Richard as saying on its website.
Orange has more than 260 million subscribers worldwide, around 28 million in France. On the other hand, Bouygues Telecom has 14 million customers, all in France.