Orange has edged closer to full ownership of Spanish telco MásOrange in a binding agreement with Lorca.

Under the agreement, Orange will purchase Lorca’s 50 percent stake in MásOrange for €4.25 billion ($5bn), giving Orange full ownership of the company.

The agreement was first revealed at the end of October, when Orange signed a non-binding agreement to explore the takeover.

“This transaction will accelerate Orange’s strategic plan, ‘Lead the Future,’ and further strengthen Orange’s position in Spain, the Group’s second-largest market in Europe. With full ownership, Orange confirms its long-term industrial commitment in Spain, and its confidence in MasOrange and its management to create value for all stakeholders,” said Orange.

Lorca is owned by private equity funds Cinven, KKR, and Providence.

The French telco and MásMóvil finalized their merger in Spain last year to create the country’s biggest mobile operator. As such, both telcos had a 50 percent stake in the newly formed MásOrange.

First announced back in 2022, the merger was estimated to be worth €18.6 billion ($21.85bn) and created a combined business of more than 37 million customers, including mobile and fixed-line subscribers.

Orange said it expects to finalize its acquisition of Lorca’s stake in the first half of 2026.