Vodafone reaches agreement with MasOrange to create largest wholesale fiber network company in Spain

Cuatrecasas has advised Vodafone Holdings Europe on its agreement with MasOrange to jointly create a wholesale fiber-optics company—FibreCo—covering 12.2 million premises (homes, offices and establishments, with clients from both telecommunications companies) across Spain. FiberCo will be the country’s largest fiber-to-the-home (“FTTH”) wholesale operator, with an estimated enterprise value of €8.000–€10.000 million.

The new company will enable Vodafone and MasOrange to maximize the use of the existing FTTH network, harnessing its efficiency and that of future technological developments, to offer their customers the best service. The transaction will improve the provision of fiber-optic broadband services in the Spanish market for the end consumer. It will also provide access to the highest quality and fastest fiber-optic network, and support the rapid adoption of new technologies.

Vodafone will use FibreCo to provide services to its existing and future retail and wholesale customers within FibreCo’s coverage. This company will be a benchmark for sustainable development, meeting the highest ESG standards through a more efficient use of the network’s assets.

The combination will ensure access to a national fiber-optic network with attractive financial conditions and provide significant cost savings across the business.

Entering this FibreCo partnership with MasOrange, alongside the recently announced agreements with Telefónica, transforms Vodafone Spain’s fixed line strategy. Cuatrecasas Corporate and M&A lawyer Federico Roig stated: “We believe these transactions will be most significant in the fiber-optic market and a benchmark in the telecommunications sector in Spain.” Roig led a working team made up of Irene Moreno-Tapia, Enrique Carrera, Mariano Ucar, Julene Areitio, Pedro López-Dóriga, Mario Mas, Pablo del Moral, and Paula Maria Wignall.