Last week the state-owned Saudi operator walked away from talks to acquire Altice Portugal; Vodafone Portugal was blocked from acquiring smaller rival
Last week could prove to be a turning point in Portugal’s telecoms market. It saw operator group stc walk away from negotiations to acquire incumbent Altice Portugal as the two parties were unable to agree terms. It seems that the Saudi titan has not abandoned its Iberian ambitions – it owns just under a 10% stake in Spain’s incumbent, Telefonica. Now stc is reported by the local news site Eco to be considering making a bid for Vodafone Portugal.
Last week Vodafone Portugal too had a setback when the country’s competition authority blocked its attempt to acquire Nowo Communications, after a protracted review. Vodafone had proposed the acquisition in 2022 and wanted to expand its presence in the country better to compete with its two larger rivals, MEO (Altice Portugal’s operating brand) and NOS.
Back in the room
It has also been reported that the consortium led by private equity firm Warburg Pincus which had been interested in acquiring Altice Portugal but pulled out, has returned to the negotiating table.
Altice Portugal is mired in an accounting scandal. Also, billionaire Patrick Drahi, who controls the Altice group, is looking to sell off assets to reduced the €60 billion debt he ran up building his empire when interest rates and inflation were at rock bottom.
He has had several unsuccessful attempts at selling off Portuguese assets but interested parties have reportedly been put off by too high a price tag: Drahi is said to want more than €7 billion for Altice Portugal.