Telefónica continues to be the number one operator in Spain, and behind it are two large companies competing for second place: Orange and Vodafone. Both mobile phone companies have spent years proposing strategies to avoid losing ground in this market . This is how it became known that Vodafone wanted to buy MásMóvil a couple of years ago.
But now, it seems that the French operator is going to try the same move that Vodafone failed to carry out. It has been revealed that Orange is negotiating a possible merger with MásMóvil , which would leave Vodafone without opportunities to grow in this sector.
Orange could merge with MásMóvil to eat Vodafone
The Expansión media outlet has been in charge of revealing the news that the operators Orange and MásMóvil are studying the possibility of becoming 50% integrated . With this, the orange operator intends to consolidate itself in second place in the Spanish mobile telephony market. In addition, it would represent a strategy to deal with low cost operators that have grown thanks to the offer of cheap rates.
The announcement of the denials between Orange and MásMóvil has come just a few days after the CEO of Vodafone, Nick Read, revealed the intentions to merge or sell the operator. As already mentioned, a few years ago there was a rumor that MásMóvil and this British operator would merge. However, those of the yellow operator would only be willing to exchange shares if they took control of Vodafone , and not the other way around.
What will happen to Vodafone if Orange and MásMóvil merge?
If the integration of Orange and MásMóvil were to be consolidated, this would represent a severe setback for Vodafone, who would be left without its main candidate to merge . This is how the British operator would expose itself to a possible sale and withdrawal from the Spanish telephone market. Given this situation, the main beneficiaries will be Telefónica and Orange / MásMóvil, which would be left without competition.
At the moment, it is not necessary to draw hasty conclusions, since the agreement between Orange and MásMóvil is still in the early stages of negotiation . And you… Do you think that this possible merger would be the end for Vodafone? Let us know in the comments.
