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(Reuters) – Orange and its Spanish counterpart MasMovil announced on Tuesday the effective creation of their joint venture and each hold 50% of the entity resulting from the merger of their activities in Spain.
According to new forecasts, the new company should generate synergies of more than 490 million euros per year from the fourth year following the closing of the transaction, the companies said in a press release.
Based on the preliminary closing accounts, the respective revenues will be approximately 4.4 billion euros for Orange shareholders and approximately 1.65 billion euros for MasMovil shareholders.
Jean-François Fallacher, until now CEO of Orange France, has been appointed non-executive chairman of the joint venture.
Meinrad Spenger, general manager of MasMovil, was confirmed as general manager of the new entity, which becomes the leading player in the Spanish telecommunications market in terms of customers.
The merger project received the green light from the European Union competition authority last February.
(Writing by Kate Entringer, editing by Zhifan Liu)
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