Telekom and Orange could MERGE, the INCREDIBLE announcement from Germany

Telekom and Orange could merge, an incredible announcement regarding the two companies coming from Germany, here is what their managers are currently discussing.

Telekom Orange MERGER Announcement Germany

Telekom si Orange could merge, and here we are not only talking about companies from Romania, but about international groups from Germany and France, which could give birth to a giant entity, capable of doing almost anything. The German press claims that the managers of Telekom and Orange are analyzing the possible merger between the two groups, something that was also discussed in 2017, but in the end it did not turn into something real, because there is no equality in the value of the companies.

Telekom and Orange are now resuming discussions, and some of the company's managers seem to be trying to put at least in a certain perspective the possible combination of the two groups into an entity that would dominate the telecom market in Europe. Both Orange and Telekom denied this information, the representatives of the two European groups saying that there are currently no discussions regarding a possible merger, although if the press is talking, it is clear that there is something.

Telekom and Orange could MERGE, the INCREDIBLE announcement from Germany

Telekom is the largest telecommunications group in Europe, with a market capitalization of 72 billion euros, while Orange has a capitalization of 40 billion euros, so there are big differences between them. If Telekom were to merge with Orange, then the German group would have to "swallow" the French group, which most likely will not be easily accepted by the management in Paris, so it is not known where the discussions will lead .

"Deutsche Telekom has evaluated the potential of a tie-up with Orange. The German and French governments hold significant stakes in the respective companies, bringing a political charge to the transaction."

Telekom and Orange also have a good part of the shares held by the governments of Germany and France, so a political decision will have to be taken, and this complicates things, without taking into account the analysis of the European Commission. Even if Telekom and Orange are now discussing a possible merger, the chances for this to take place are very small, as it happened 2 years ago, even though the companies collaborated on certain acquisitions.

A merger between Telekom and Orange would also have effects in Romania, where the French group has a much more important position than the German one, but this should not affect Romanian customers.