The Israeli operator Pelephone, the mobile subsidiary of Bezeq, announced that it has signed a memorandum of understanding (MoU) to acquire its rival HOT Mobile, currently owned by Altice International. The proposed value of the deal is 2.1 billion shekels (approximately 563 million euros).
According to a statement released by the companies, the MoU is non-binding and serves as a basis for more detailed negotiations. Pelephone will now have 45 days to carry out due diligence and negotiate a final agreement. The deadline may be extended by an additional 15 days if both parties agree.
The completion of the deal will depend on regulatory approvals, including authorization from Israel’s Ministry of Communications and the Competition Authority, as well as approval from the boards of directors of both companies.
The current proposal exceeds Pelephone’s offer made in July, which reached 2 billion shekels and had not been accepted by Altice. The new offer comes amid Altice’s divestment process, as the group seeks to reduce its global debt.
If confirmed, the acquisition is expected to have a significant impact on the Israeli telecommunications market. The merger between Pelephone and HOT Mobile would strengthen Bezeq’s position in the mobile segment and could generate operational synergies, as well as new investments in the expansion of the 5G network. HOT Mobile currently has around 2 million subscribers, while Pelephone has approximately 2.6 million.
Despite the potential to create a more robust operator, experts warn of possible regulatory challenges, given the importance of maintaining competition in the sector, which also includes several mobile virtual network operators (MVNOs).
The outcome of the negotiations should become clearer in the coming weeks, as the evaluation process and discussions with Israeli authorities move forward.
