MásOrange and Vodafone Spain have signed an agreement with Singapore sovereign wealth fund GIC to create the FibreCo joint venture, which they claim will become the largest fiber optic operator in Spain.

The companies will together cover 12 million real estate units and around five million customers, surpassing wholesale fiber optic operators such as Onivia, which has a network reaching almost four million homes.

MásOrange will hold 58 percent of FibreCo’s shares, while GIC and Vodafone Spain will hold 25 percent and 17 percent, respectively.

Under the terms of the agreement, the network will be exclusively dedicated to both operators, who will also continue to maintain and operate the infrastructures that each has contributed to FibreCo.

Both MásOrange and Vodafone customers will have access to a state-of-the-art fiber-optic network (FTTH).

The transaction is subject to regulatory approvals and is expected to be completed in the fourth quarter of this year.

“We are very pleased to announce this agreement with Vodafone Spain and GIC to create the largest FibreCo in Spain. GIC has been chosen after a competitive process with close to 20 interested investors. This alliance will allow us to offer our customers the best premium FTTH connectivity and guarantee future technology upgrades,” said Meinrad Spenger, CEO of MásOrange.

José Miguel García, CEO of Vodafone Spain, added: “We continue to advance our strategy to transform Vodafone Spain into a more competitive, efficient, and growing company. This agreement is a relevant milestone in our plan, as it will guarantee our customers access to fiber optic networks and better service.”

In March 2024, MásMóvil and France’s Orange merged to form MásOrange, creating Spain’s largest telecommunications company valued at approximately €19 billion ($22bn) and covering nearly 37 million mobile and fixed customers.

Orange is planning to buy the 50 percent of MásOrange that it does not currently own with a tentative offer of €4 billion ($4.6bn) from Lorca Telecom, the company owned by Cinven, KKR, and Providence, which owns the other half of the shares.