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The deal was first announced in March
This week, Vodafone Italia’s sale to Swisscom has been approved by the Italian communication authority AGCOM, Swisscom has confirmed.
“The transaction is still subject to two other regulatory approvals, including that of the Italian Competition Authority (Autorità Garante della Concorrenza e del Mercato, AGCM). The latter announced on 11 September 2024 that it had opened an in-depth investigation (Phase II) to assess the acquisition under Italy’s merger control rules,” said a Swisscom statement on Wednesday.
The deal was first announced back in March, and was given approval by the European Commission in August. The deal will see Swisscom acquire Vodafone’s Italian business unit for €8 billion.
Once completed, Swisscom plans to merge Vodafone Italia with its Italian subsidiary, Fastweb, creating Italy’s second-largest fixed-line broadband provider, behind market leader Telecom Italia. This, they said, will create around €600 million in savings through increased scale and a more efficient cost structure. As part of the transaction, Vodafone will provide some service to Swisscom for the next five years.
Vodafone has been actively reshaping its global strategy to streamline operations, reduce debt, and focus on core markets. This approach has seen significant moves across various regions. Last year, the sale of Vodafone’s Spanish unit to Zegona Communications for €5 billion marked a key step in divesting from underperforming markets. In the UK, Vodafone is pursuing a merger with Three, a deal aimed at boosting network investment, accelerating 5G rollout, and creating one of the largest mobile operators in the country. These efforts are part of CEO Margherita Della Valle’s strategy to refocus Vodafone on high-value assets and improve shareholder returns amid a competitive telecom landscape.
The transaction still requires two additional regulatory approvals, including one from the Italian Competition Authority (Autorità Garante della Concorrenza e del Mercato, AGCM). On 11 September 2024, the AGCM initiated a Phase II in-depth investigation to review the acquisition under Italy’s merger control regulations.
Following its 15 March 2024 announcement, Swisscom anticipates completing the transaction in the first quarter of 2025.
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