Orange, Masmovil Initiates Joint Venture In Spain

(RTTNews) - On Tuesday, France-based Orange S.A. (ORAN) said that it has completed the merger of its operations in Spain with Masmovil, creating the country's biggest operator in terms of customers.

The telecom companies announced jointly that they each will own 50 percent of the joint venture, which is expected to generate synergies of more than 490 million euros per year after four years of the deal's closure.

Upon the closure of the deal, Orange will receive proceeds of approximately 4.4 billion euros, whereas Masmovil shareholders will receive 1.65 billion euros.

The joint venture, which will be operational from today, will be headed by Masmovil CEO Meinrad Spenger.

Currently, Orange's stock is trading at $11.54, up 0.30 percent on the New York Stock Exchange.