Orange reportedly held talks on merging its Spanish operation with rival Masmovil, with the two apparently exploring the viability of creating a 50:50 joint venture for their offerings in the country.

Spanish newspaper Expansion reported the discussions, claiming they were a response to deemed negative consequences of other consolation alternatives in the country.

Expansion’s sources offered limited detail on how a potential tie-up between the two would look, apart from noting a new company would be formed with ownership split so Orange holds half while Masmovil’s parent companies own the remainder.

Reports of Masmovil combining its operation with a competitor are nothing new. Since its buyout by a venture owned by a trio of investment companies in 2020 the operator has been regularly linked with either buying a rival, merging or being acquired.

Last week, Spanish media reported Masmovil was once again in talks with Vodafone Spain over a potential deal.

Executives from Orange and Vodafone have bemoaned the competitive market in Spain in recent years, with the pair making rounds of staff cuts and other structural changes in attempts to turn around their respective operations.

In July 2021 Orange took a huge writedown of the value of its Spanish unit as the group’s CEO Stephane Richard pointed to a worsening competitive market in the country.