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Altice France rejects €17 billion takeover bid for SFR from telecom rivals

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Altice France, the owner of SFR, has rejected a €17 billion ($19.8 billion) joint offer from French telecom giants Bouygues Telecom, Iliad’s Free, and Orange. The move dampens investor hopes for long-awaited consolidation in Europe’s competitive telecom market.

In a memo to employees, CEO Arthur Dreyfuss confirmed that the proposal, which valued Altice France at around €21 billion, had been “immediately rejected.” The bid’s rejection came after it boosted shares of major telecom firms, with Bouygues hitting a seven-year high before closing 9% higher, while Orange rose 3%. The CAC 40 index also gained 2%, lifted by speculation of industry consolidation.

Despite the rejection, Bouygues, Orange, and Iliad reaffirmed their commitment to the proposal, saying it would benefit “customers, employees, creditors, and shareholders.” Analysts at J.P. Morgan viewed the offer as stronger than expected, estimating SFR’s standalone value at €16 billion but noting potential synergies could lift it beyond €20 billion.

Finance Minister Roland Lescure said the government would be “extremely vigilant” about the deal’s potential effects on prices and service quality. Any merger would need approval from French or EU regulators, given that France has maintained four major mobile operators since 2012.

SFR, the country’s second-largest telecom provider, currently serves over 19 million mobile and 6.1 million fiber customers. Analysts suggest that if consolidation moves forward, it could influence similar restructurings across other European markets.

Japan’s JIC Reaffirms Chip Sector Consolidation Plans Despite JSR Losses

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Japan Investment Corporation (JIC), the state-backed investment fund, remains committed to its long-term goal of driving consolidation in Japan’s semiconductor materials sector through its portfolio company JSR, despite the firm’s recent financial struggles.

JSR, a leading photoresist manufacturer, ended the fiscal year in March with a 209 billion yen ($1.45 billion) operating loss, primarily due to its underperforming life sciences division. Nevertheless, JIC Capital CEO Shogo Ikeuchi emphasized in a recent interview that the strategic intent behind JIC’s $6 billion buyout of JSR last year remains unchanged.

“Our goal was to take JSR private and… through a series of industry reorganizations, such as mergers with similar companies or rivals… to significantly grow the semiconductor business and enhance international competitiveness,” Ikeuchi said. “That goal hasn’t really changed at all even now.”

JSR has since restructured its leadership and is undergoing a strategic overhaul. While its new CEO recently stated that the company isn’t ready to pursue acquisitions yet, JSR has agreed to sell part of its life sciences unit to Tokuyama Corp in an 82 billion yen deal, a move aimed at focusing on its core chipmaking business.

JIC’s involvement in JSR has faced some criticism in Japan’s traditionally conservative corporate environment, with skeptics questioning the necessity and potential of such state-led intervention. Ikeuchi acknowledged these concerns, stating, “Japan is a country where restructuring is structurally difficult.”

Despite these hurdles, JIC maintains its goal of eventually re-listing JSR, likely within five to seven years, though an earlier IPO is not ruled out.

Industry players are already expressing interest in potential partnerships or acquisitions. Resonac, another major player in chip materials, said in February it would be interested in JSR when JIC eventually exits. Ikeuchi confirmed Resonac as one of the options, though noted its current debt burden as a limiting factor.

JIC, created in 2018 under the oversight of Japan’s trade ministry, aims to strengthen Japan’s industrial competitiveness — with semiconductor self-reliance a national priority amid global supply chain tensions.