Virgin Mobile France, in which Carphone Warehouse has a 48.5 per cent stake, has agreed to buy Tele2 Mobile France for €56 million (£51m).
Tele2 Mobile France has around 385,000 customers, or which 375,000 are on contract.
Following the transaction, Virgin Mobile France will have more than 1.6 million customers, of which 60 per cent will be on contract, consolidating its position as France’s largest MVNO and the fourth largest mobile operator.
The Tele2 France deal will help Virgin Mobile France move toward its target of profitability during 2010, and its customer target of two million.
The deal requires the approval of the French anti-trust authorities.