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M&A Transaction•

MasOrange, Vodafone, GIC launch Spain’s biggest fibre network - InforCapital

MasOrange, Vodafone, and GIC form Spain’s largest fibre network to boost FTTH expansion, ESG goals and digital infrastructure.

AM
Alvaro de la Maza

Partner at Aninver

Key Takeaways

  • Sector: Telecommunications.
  • Geography: Spain.

Analysis

Madrid, Spain – August 6, 2025 – In a landmark move for Spain's telecom sector, MasOrange, Vodafone Spain, and Singapore’s GIC have created the country's largest fibre optic network through a joint venture named FibreCo. The initiative marks a significant stride toward advancing Spain’s digital infrastructure and positioning it as a leader in European connectivity.

FibreCo will integrate 12 million premises and 5 million customers from both MasOrange and Vodafone, who will maintain and operate the networks they contribute. The new company will be co-controlled, with MasOrange holding 58%, GIC 25%, and Vodafone Spain 17%.

With its extensive scale, FibreCo aims to drive operational efficiency, technological upgrades, and sustainability. It plans to accelerate adoption of next-gen FTTH technologies such as XGSPON and enhance energy efficiency in line with ESG (Environmental, Social, and Governance) commitments.

“This venture will provide our customers with the best premium FTTH connectivity and assure future technology upgrades,” said Meinrad Spenger, CEO of MasOrange. Vodafone Spain’s executive, José Miguel García, added that the deal enhances the company’s competitiveness and customer service quality.

GIC, one of the world’s largest sovereign wealth funds, was selected after a competitive process involving nearly 20 potential investors. According to Boon Chin Hau, CIO of Infrastructure at GIC, the joint venture reflects strong confidence in Spain’s growth potential in broadband connectivity.

FibreCo is also expected to play a pivotal role in closing Spain's remaining fixed broadband penetration gaps, even as the country already leads much of Europe in FTTH rollout. The deal further mirrors similar efforts across Europe, such as KKR-backed Open Dutch Fiber in the Netherlands, and Altice’s joint venture with Morgan Stanley Infrastructure Partners in Portugal, both aimed at fast-tracking fibre deployment and modernizing legacy networks.

To strengthen its position, MasOrange will also contribute Conexus Networks, a wholesale FTTH provider in northern Spain, into the FibreCo platform. The company has secured financing with over €5 billion in net debt from a consortium of 20 global banks, with most of the funding rated investment grade—demonstrating the strong appetite for stable telecom infrastructure assets.

The €3.2 billion net proceeds MasOrange receives from the transaction will be used to reduce corporate debt, targeting a mid-term leverage ratio of 2.75x. FibreCo will be fully deconsolidated from MasOrange's financial statements as part of the operation.

Pending regulatory approval, the transaction is expected to close in Q4 2025. The partnership sets the stage for robust digital growth across Spain and signals investor confidence in telecom infrastructure as a resilient, long-term asset class.