France Télécom has bought a 40 per cent stake in Méditel, Morocco’s second-largest mobile operator, for €640 million, marking the first step in its strategy to boost its presence in African markets.
Méditel (Médi Télécom) is the second biggest global telecoms operator in Morocco, with licences for fixed, mobile and 3G telephony. It has been active in the telecoms sector since 1999.
With over 10 million mobile subscribers and a market share of 37 per cent, Méditel achieved sales of over 5.3 billion dirham (€465 million) in 2009.
The deal puts France Télécom in direct competition with its domestic rival Vivendi, which owns 51 per cent of Maroc Télécom, Morocco’s largest provider.
Commenting on the deal, Stéphane Richard, France Télécom’s CEO, said: “The acquisition of this stake in Médi Télécom is the first concrete step in our new policy of expansion outside Europe, and contributes to our stated aim of doubling our revenues in Africa and the Middle East over the next five years.
“I am delighted to contribute to this strategic partnership, which can only strengthen Médi Télécom's profile as a dynamic and solid company.”
France Télécom already has operations in 20 countries in Africa and the Middle East. The company has plans to double its revenues from those regions within five years, and has said it is seeking to make €2 billion of acquisitions—having recorded sales of €3.8 billion from Africa and the Middle East in 2009.
The company plans to recruit 10,000 new staff over the next two years.
The Méditel transaction is expected to take place by the end of 2010, with the final closing of the agreement remaining conditional to the prior approval of the Moroccan regulatory body, ANRT.
