In an effort to better compete with France Telecom, SFR, the second largest mobile operator in France, has been given the government's go-ahead to purchase the Louis Dreyfus Group's stake in the French cable operator Neuf Cegetel.
The transaction will see SFR--which is co-owned by Vodafone and Vivendi, controlling nearly 70 per cent of Neuf Cegetel. Earlier this month, SFR had denied that it would cut over 2,000 jobs if it was to acquire Neuf Cegetel.
While the deal received Vodafone's support, the addition of a cable network to SFR's portfolio is seen as complicating the U.K.-based company's long-held ambitions to increase its direct presence in the French market.
For more on this story:
- read Cellular News and Forbes
Related stories:
Neuf Cegetel ups profits, eyes FTTH goals. Story on Neuf Cegetel
Vivendi debuts multi-platform entertainment portal. Story on Vivendi