(Reuters) -Bouygues Telecom, the unit of French conglomerate Bouygues (EPA:BOUY), said on Thursday it had signed an exclusivity agreement with La Poste Group to buy La Poste Telecom for 950 million euros ($1.03 billion).
Bouygues Telecom would buy the entirety of the company which is currently 51% owned by postal company La Poste Group, and 49% by French telecommunications company SFR.
SFR, a rival of Bouygues in the telecoms market, is owned by the once-listed Altice Europe.
"The acquisition price for the shares is €950 million, which will be adjusted based on the timing of the transaction," Bouygues Telecom said in a statement.
The deal also involves an exclusive distribution partnership involving La Poste Group, La Banque Postale and La Poste Telecom, Bouygues Telecom said.
The deal "would allow Bouygues Telecom to strengthen its mobile customer base of around 2.3 million individuals," said Bouygues Telecom in the statement.
Should the transaction go through, Bouygues Telecom will update its 2026 guidance within months of its completion, it added.
($1 = 0.9243 euro)