Orange and the Romanian Government sign agreement for the merger of Orange Romania and Orange Romania Communications

Orange announced that it has signed an agreement with the Ministry of Research, Innovation and Digitalization (MCID) with a view to merging Orange Romania (ORO) and Orange Romania Communications (OROC). The two shareholders thus confirm the intention to create a fully converged telecommunications operator through the absorption of OROC by ORO.

This agreement follows Orange’s acquisition of a 54% stake in OROC (formerly Telekom Romania Communications) in September 2021. According to this new agreement, both parties have agreed on a structure in which Orange will hold 80% of the share capital and 80% of the voting rights in the resulting entity, while MRID will hold 20% of the share capital and 20% of the voting rights.

Orange Romania reported individual revenues of 1.2 billion euros in 2022 and is the number one mobile operator in Romania, while Orange Romania Communications, one of the largest fixed telecommunications operators in Romania, reported revenues of 513 million euros in 2022. This landmark transaction in the local market will support Orange’s ambition to strengthen its leading position in Romania.

The future entity will aim to become the preferred provider of convergent fixed-mobile services on the Romanian market, both for the consumer and business segments, and will stimulate investment and competition in the telecommunications sector in Romania, which will bring , undoubtedly benefits society as a whole.

Completion of the transaction is expected in the first half of 2024.

Mari-Noëlle Jégo-Laveissière, Executive Vice President, CEO of Orange in Europe, commented:  “Today is a very important day for Orange Romania and Orange Romania Communications, and the signing of this agreement will strengthen our position on the Romanian market and bring us closer to being a fully converged telecom operator for our residential and business customers. I want to thank the Romanian Government, our key partner, and our involved teams for this achievement”.

Julien Ducarroz, CEO, Orange Romania, commented: “We are really pleased to announce the conclusion of such a strategic agreement for Orange Romania, which marks a crucial moment in the company’s history and confirms the confidence of the Ministry of Research, Innovation and Digitization in our strategic ambitions, in the project and in the team. Now, with united forces, we accelerate towards the fulfillment of the common goal: to be the first option for fixed-mobile services in Romania”.