Oct 21, 2025
3 min read
According to analyst estimates, the telco could create attractive synergies and increase free cash flow by 20 percent.
The price of the first major operation in Matbucika: 5.4 billion to buy 1 and 1 German
According to analysts' estimates, communication can create interesting synergies and increase free cash flow by 20%.
Telefónica is focusing on consolidation in the German sector. At least that is according to the latest information.A possible takeover of 1 & 1 seems to be possible for the telecommunications company, which is on the verge of presenting a new strategic plan under the chairman of Wholesale Marc Mujal.According to analysts, the group's operating expenses in Spain are approximately 5.4 billion euros.
The telecommunications company owned by the state, CriteriaCaixa and Saudi Stc, is again the protagonist of possible operations.Movements that meet the expectations of the new stage of telecommunications, in which it wants to be a fundamental player in the consolidation of the sector.
With the absorption of Vodafone Spain in the air, Telefónica is now interested in acquiring 1 & 1, which is owned by United Internet, as reported by the Newspaper in German reported by Distek in the German Piransang in Germany.
It is the fourth largest operator in the German market and a "natural" acquisition in the concentration of the European telecommunications market, since the Spanish group is in the German ranking.
For example, in Spain, oranges and Mammóvil are combined in joint production and occupy the second and fourth positions in the fourth market.In fact, if you pass through the complex regulatory filter of asset sales through the Brussels process, it is called treatment.
In any case, the operation was not easy to establish for various reasons, including Telefónica's debt, the approval of the competition supervisor and the price.
These prices is like bloomberg infnose the checks
An amount that resulted in a discount of 25% to 35% from last Friday's price, although 1&1 gave space this Monday after the information was published.
Synergies for Telefónica
The German company was valued yesterday up to 12.11%, rising to 22.4 euros per share and a market capitalization of more than 3.8 billion.
However, experts believe that the purchase "has a strong strategic rationale" and estimate cost synergies ranging from 1,500 to 2-600 million euros "on a net discounted basis" as well as a "possible market correction."
Other analysts suggested by the German newspaper that the operation could result in $7.2 billion in synergies from the joint venture, as 1 and 1 Vodafone's payments to use its network will be eliminated until now, as more than 12 million customers will be transferred to Tifonica Germany in 2023.
And the buyout agreement would predict that German Telecoms users would return to telefonica's network
Another positive aspect that Telefonica Telefonica can do is reduce their cash flow, liabilities or new financial investments.In this way, Deutsches Bank analysts can develop from 20
In terms of customer data, the first and third companies are in third place in the Internet sector, with a market share of nearly 10% (Telefonica's 6%).Tensche Teute Telekom controls 40% of the market and Vodafone 27%.
In the mobile segment, German telcos are in fourth place (11%), while Deutsche Telekom controls 31% of the lines, Telefónica 30% and Vodafone 29%.
The potential union Murtra would seek would give Telefonica Germany the impetus to oust Vodafone as the second-largest operator amid commercial weakness and falling revenues.
Telefonica has huge debt
Although some statistics are positive and some analysts rationalize the operation, there is a fabric that makes an operation of this scale a reality.
In terms of finances, the group is mainly based in Latin America at the moment, although it is a lot of debt to bear when they are resurgent.
Telefónica's debt is now 3.4 times EBITDA and exceeds 27,000 million euros.According to information from Handelsblatt, the purchase of 1 & 1 will increase leverage by 3.9 times.
For New Street Research analysts consulted by the British newspaper, such a high level could cause its credit rating to be downgraded by rating agencies.
Therefore, the complexity of the operation may lead to other possibilities.Therefore, instead of completely purchasing German Telecom, Telefónica could also buy only part 1 and 1 or simply enter into a more commercial alliance with a company that will have difficulty dismantling its own network.
