KKR and Singapore’s sovereign wealth fund GIC have emerged as the leading contenders to acquire a majority stake in the proposed joint venture combining Orange and MásMóvil’s Spanish telecom operations, according to a report by Reuters citing unnamed people familiar with the process.
The two global investors join a shortlist of four private equity suitors in the competitive auction overseen by financial advisers mandated earlier this year.
Orange and MásMóvil, which together serve over 20 million mobile and broadband customers in Spain, launched the sale process as part of a broader strategy to deleverage their balance sheets and refocus on core markets. Activist investor Zegona Communications, which holds a significant minority position in MásMóvil, has agreed to roll its existing stake into the new venture and will emerge as a cornerstone shareholder alongside the winning bidder.
Sources say that KKR and GIC have both advanced to the final round after submitting non-binding offers that reflect an enterprise valuation in the region of €12–14bn for the merged assets. Two other unnamed private equity firms are also believed to remain in contention, having cleared earlier due diligence hurdles. All bidders are now working toward binding proposals, which are expected by late July.
The deal, targeted to close by year-end pending regulatory approvals from Spanish and European competition authorities, would rank among the largest European telecom carve-outs to date. For KKR and GIC, the acquisition represents a rare opportunity to gain scale in a regulated infrastructure asset that offers stable cash flows and significant growth potential as Spain’s fifth-generation mobile network rollout and fixed broadband upgrades accelerate.
KKR has built a deep track record in global telecom and infrastructure investments, while GIC’s participation would underscore its long-term commitment to European digital assets. Both firms are expected to bring operational expertise and access to capital that could further enhance the JV’s competitive position against consolidation by larger European incumbents.
Orange and MásMóvil will retain minority positions and board representation in the combined entity, which will operate under a new corporate structure designed to streamline operations and drive synergies across network deployment, customer service, and product offerings. Zegona’s continued involvement is seen as a stabilising factor, given its history of constructive engagement and governance expertise.
