Blackstone Explores Major Telecom Bid for France’s SFR

Key Takeaways

Sector: Telecommunications.
Geography: France.

Analysis

Blackstone is evaluating a potential joint acquisition of SFR, the French telecoms provider owned by Altice France, in what could become one of Europe’s largest telecom transactions this year. The deal could value SFR at up to €30 billion ($32.5 billion) including debt, according to people familiar with the matter.

The US-based alternative asset giant is reportedly in early-stage discussions with several industry players and financial sponsors, seeking a co-investor to support a formal bid. While Blackstone has not yet committed to an offer, sources say the firm is unlikely to proceed alone, reflecting the transaction’s scale and complexity.

Altice France, controlled by billionaire Patrick Drahi, is exploring strategic options for SFR amid long-standing debt pressures. Domestic telecom rivals such as Bouygues, Iliad, and Orange are said to be monitoring the situation, while private equity consortia are also forming to assess a potential carve-out or majority stake purchase.

This potential move fits Blackstone’s broader ambition to scale its European exposure, with CEO Steve Schwarzman recently outlining plans to invest up to $500 billion across Europe over the next decade. Key focus areas include infrastructure, telecoms, and defence-aligned assets—sectors benefiting from heightened investor attention and regulatory tailwinds.

Signs of progress around the possible sale led to a rally in Altice France’s bonds, with its €500 million notes due 2028 climbing to 37.18 cents on the euro, and its €800 million 2029 notes reaching 86.2 cents, according to Bloomberg.

The situation follows a significant financial restructuring by Altice in February, in which the company agreed with creditors to reduce its debt by €8.6 billion—around one-third of total liabilities—while retaining Drahi’s majority control. The company is currently focused on improving SFR’s operations and monetizing non-core assets as part of its deleveraging strategy.

Blackstone is also deepening its presence in France, with senior dealmakers such as Mathieu Cransac and Lukas Denizot relocating to Paris to support deal origination and execution in the country. Cransac, a Managing Director, and Denizot, a Principal in the firm’s private equity group, are expected to lead local efforts on large-scale European transactions.

Both Blackstone and Altice declined to comment on the ongoing discussions, which remain fluid.