20 October 2015: Telecoms in La Reunion and Mayotte
The Autorité de la concurrence clears the acquisition of joint control of Outremer Telecom’s mobile activities
by Iliad alongside Hiridjee
The Autorité de la concurrence has reviewed the acquisition by Iliad of 50% of the capital of the company Telecom Reunion Mayotte, which will henceforth be jointly controlled by Iliad and the Hiridjee group. The Autorité gave its clearance today.
The parties and the transaction
Iliad is a limited company which operates fixed and mobile telecommunications businesses in mainland France under the Free brand. Free Mobile is the fourth mobile telephone operator in mainland France but did not yet have any activities in La Reunion and Mayotte.
Hiridjee is a family group, mainly active in Madagascar in a variety of sectors including telecoms, real estate, energy or fuel distribution. On 15 June 20151, the Autorité approved the sale to the firm Hiridjee of the Outremer Telecom mobile telephony businesses in La Reunion and Mayotte – which the Altice group had committed to divest as a condition for clearance by the Autorité of the acquisition of SFR by Numericable. These businesses were taken over by Hiridjee via its subsidiary Telecom Reunion Mayotte.
The Autorité today clears the acquisition by Iliad of 50% of the capital of the company Telecom Reunion Mayotte, so that after the transaction, Iliad and Hiridjee will hold joint control of Outremer Telecom’s mobile activities.
Impact of the transaction on competition
The transaction allows Iliad to enter the markets of La Reunion and Mayotte. The deal will thus make it possible to develop the businesses divested by Altice’s capacity to stimulate competition by tying them to one of the national mobile telephone operators.
Moreover, the transaction does not lead to any overlapping activities. In general, the impacts of mergers in the telecommunications sector are reviewed with a distinction between mainland territory and overseas territories, owing to their specific characteristics. Yet Iliad only operates in mainland France, while Telecom Reunion Mayotte is only active in La Reunion and Mayotte.
Therefore, the Autorité de la concurrence has unconditionally cleared the transaction.
1 See press release of 15 June 2015.
> The full text of Decision 15-DCC-142 will soon be published on the Autorité’s website.
> Press contact: Rebecca Hébert – Tel. +33 (0)1 55 04 01 81 - Email