Telefónica is preparing to acquire rival operator Movistar.
The telecommunications market is preparing to witness possible purchase transaction this will give you a lot to talk about. Because it turned out that Telefónica is interested and has very good opportunities to become the owner of one of Movistar’s competitors. This will again increase its market share in the country.
This is not the first time Telefonica shows interest in acquiring Avatel. We talked about this in March 2024, at which time it was assumed that the purchase could be valued at approximately 1 billion euros. However, the situation has since changed and, as you probably read a few days ago, Avatel has launched an ERE that will affect over 800 employees. This could freshen up the idea of buying Telefonica.
The operation is evaluated according to the internal figure
Telefonica’s interest remains strong, but the cost of the operation has significantly reduced the cost forecast. From the approximately 1 billion million that was discussed in March, the figure that is predicted estimated at 700 million euros. This amount will include the company’s net debt.
Telefónica will take advantage of this inflection point experienced by the operator, which has realized that it is undergoing a phase of adaptation and consolidation. A phase which, however, may end in final sale. If this comes to fruition, it will mean that Telefónica, which owns not only Movistar but also other businesses in the sector such as O2, will once again expand its networks and increase its volumes in the Spanish market.
But Telefónica is not the only one interested
There are many names that sound around Avatel Telecom, especially now that the situation due to ERE seems favorable for a final sale. Telefonica will therefore have to deal with the interest that has also been shown by investment firms HIG Capital, Searchlight Capital and PAI Partners, all of whom are apparently interested and ready to compete for ownership of the Spanish operator.
It is fair to say that Avatel’s history is very interesting and that it has managed to make history in the Spanish market. It all started as a small business who took her first steps on the Costa del Sol. Gradually it began to see opportunities for expansion throughout Spain and formulated a strategy that involved acquiring other operators. Always small businesses, but companies that allowed them to continue to grow. The number of acquisitions they have done has been such that they have acquired 155 companies from 2016 to date. This allowed them to obtain the title of the fifth largest operator in Spain.
Due to this, and the fact that the services offered by Avatel are attracting great interest from a company like Telefónica, the operator may make every effort to close the operation. On the other hand, it would be nice respond to other purchasing transactions or the mergers registered in recent months in our country, such as those that occurred between Orange and MásMóvil. But it’s obviously too early to tell how the story will end, given that several names are already interested in the acquisition, and it wouldn’t be strange if Avatel gained more fans at this time.
As you may know, Avatel offers fiber and mobile services, as well as a television platform. They also have WiMAX, which brings connectivity services to places that other operators typically don’t reach, such as rural areas. For all these reasons, this acquisition looks very interesting for Telefonica’s growth.