Orange negotiating the merger of its Spanish unit with MasMovil

According to a report by business newspaper Expansión, citing unidentified sources, telecom operator Orange SA (ORAN) is exploring the merger of its Spanish division, which is the second largest in the country, with domestic competitor MasMovil.

The resulting company is expected to come close in size compared to leading operator Telefonica and overtake Vodafone, which is currently the third largest in Spain.

Under the merger plan, Orange shareholders will be granted 50% in the new company, while MasMovil’s shareholders will have access to buyout funds KKR, Cinven and Providence, according to the newspaper.

As of 8:12 GMT on Wednesday the shares of Orange SA were losing 0.50% (EUR 0.05) to trade at EUR 10.70 in Paris.