France Telecom and Denmark’s TDC are set to merge their Swiss operations — Orange Switzerland and Sunrise, respectively — in a move that would create a powerful rival to the market leader – Swisscom. France Telecom said it will pay 1.5 billion EUR to TDC to become a 75% shareholder in the combined entity, while TDC will hold the remaining 25%.
The new firm will have approximately 3.4 million mobile and 1.1 million fixed and broadband customers, accounting for a 38% share of the Swiss mobile market and 13% of the fixed broadband connections. At the same time, the merger is expected to generate synergies to the tune of 2.1 billion EUR.
According to France Telecom’s Gervais Pellissier: “The planned merger of Sunrise and Orange Switzerland marks a new significant step in the long-term investment by France Telecom-Orange in Switzerland. Following the UK joint venture between Orange and T-Mobile ,France Telecom completes another major in-market consolidation, consistent with its M&A policy.”
At the moment, Swisscom dominates the Swiss mobile market with an estimated 62% marketshare (5.5 million connections) in Q3 2009. Sunrise holds the second position with 1.9 million users (a 21% market share), while Orange is third with 1.6 million users (18%).
Source: Intomobile via GSMA