DUBLIN, March 31, 2016 /PRNewswire/ --
Orange SA and Bouygues SA face a weekend of tough discussions as they attempt to reach an agreement on Orange's proposed purchase of Bouygues' wireless carrier, a deal which could value the unit by up to USD 11 billion. Months of talks have failed to produce a deal that would result in the establishment of a French wireless giant, and both companies plan to meet again before April 3. Global LTE networks will be worth USD 800 billion by 2020, according to a recent report available from Research and Markets, so it's understandable why both companies are keen to reach an agreement on the deal.
Complications have arisen regarding the number of Orange shares and votes Bouygues will receive from the deal, in addition to how potential breakup fees will be distributed. The inability to reach a final decision has caused shares in both companies to drop, with shares in Orange dropping by 1.5% to EUR 15.35 while shares in Bouygues declined by 3.3% to EUR 36. Numerous parties are involved in the talks, as Orange are trying to transfer Bouygues assets to reassure board members concerned about competition authorities.
Orange and Bouygues stand to greatly benefit from progressive growth in various telecommunication markets should they reach a final agreement. The global Wi-Fi market will grow at a CAGR of 17.8% to reach a value of USD 33.6 billion by 2020, as forecast in an industry report.
The unified communication as-a-service (UCaaS) market in Europe is set to grow at a CAGR of 11.2% during the 2016-2020 period, as predicted in a recent report. Orange currently offer businesses efficient UCaaS services, and the current market will support service expansion should Orange choose to do so following their acquisition of Bouygues.
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SOURCE Research and Markets