In the dynamic stage of the telecommunications industry in Spain, Telefónica and the Saudi telecommunications giant, Saudi Telecom (STC), are separately considering the acquisition of Avatel Telecom, a company that could be valued at over 1,000 million euros. This interest arises at a time of reconfiguration in the sector, marked by the merger of Orange España and Grupo Másmóvil or the acquisition of Vodafone by Zegona, promising to significantly disrupt the balance of power in the Spanish telecommunications arena.
Avatel Telecom, currently the sixth operator in the Spanish sector ranking, could rise to the fifth position after the integration of Orange España and Másmóvil, a union expected to lead the market in terms of customer numbers. This poses a direct challenge to Telefónica, historically the sector leader, which now sees an opportunity to strengthen its position through inorganic expansion.
Angel Vilá, CEO of Telefónica, recently pointed out the window of opportunities opening up for the company in the new competitive landscape, which may include the acquisition of Avatel as a defensive strategy to safeguard its market supremacy. The purchase of Avatel, a wholesale customer of Telefónica, is considered to have low impact due to its size but could signify a crucial strategic move for the Spanish company in a time of significant sector transformations.
On the other hand, Saudi Telecom (STC), which has already shown interest in increasing its presence in the Spanish market through an investment in Telefónica, is also independently considering the acquisition of Avatel. This interest from the Saudi group underscores its intention to expand its presence in European soil, seizing market opportunities arising from sectorial reorganization.
The Orange-Másmóvil merger not only has stirred up the telecommunications sector in Spain but has also put Avatel in the spotlight as a potential acquisition target for major players like Telefónica and STC. This joint interest highlights the importance of Avatel in the new competitive landscape and the need for established companies to adapt through consolidation and the acquisition of new assets.
As the sector braces for more consolidation moves driven by the approval of significant mergers like Orange-Másmóvil, the potential acquisition of Avatel by Telefónica or STC could be an early indicator of how companies will seek to navigate and strengthen their positions in this evolving market.
But there are many more companies that could be in the crosshairs of telecommunications company acquisition operations such as Adamo Telecom, Aire Networks (Aire Group), Olivenet Network, Fi Network, cableWorld, Sarenet, among others.