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Orange and MasMovil Merger

Orange and MasMovil Merger

Orange S.A is a French multinational telecommunications corporation, and it is the 11th largest mobile network operator in the world. Group MasMovil is a Spanish telecommunication company, one of its subsidiaries Yoigo, is the 4th largest mobile network operator in Spain.

Recently both telecommunication companies have signed a binding agreement of $19 billion to combine operations in Spain. The deal prevents both Orange and MosMovil to sell their shares through 2-year lock-up provisions. 

Major effects-

The merger between the two of the largest telecommunication companies will create a major threat to another top player Telefonica. Also, this merger would increase the possibility of further alliances like this in Italy, Portugal, and the UK. It also affects Vodafone, and this merger would have a huge impact on the market because it will reduce the competition between telecommunication companies and benefit the operators more.

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