Orange will pay approximately £2.7 billion to secure the acquisition, after winning the backing of approximately 50.01% of shareholders. The bid values the company at €13 a share.
The move is designed to help Orange compete more effectively with Telefónica and Vodafone, after it was left without a fixed-line offering in the country.
“We are doing this deal to accelerate our growth in Spain, particularly in fixed-mobile convergent offers,” said Stephane Richard, CEO at Orange.
“The new company will be the incontestable number two in fixed-line services and third in mobile behind Vodafone, but we think we’ll be able to take second place pretty quickly.”
The deal has been accelerated after Vodafone acquired fixed-line player Ono, and Telefónica has also been offering bundled fixed and mobile services in the country.
Jazztel has been rumoured to be interested in acquiring TeliaSonera’s Yoigo, however it is now unlikely to pursue the deal.
Orange has ruled out further acquisitions in other countries after securing Jazztel, with Richard claiming the company is now well positioned in most of its operating markets.
