27.9 C
New Delhi
Saturday, April 20, 2024

Swisscom’s EUR 8 Billion Acquisition of Vodafone Italia

More from Author

In Short:

Swisscom announced today that it will acquire Vodafone Italia for EUR 8 billion. The aim is to merge it with its subsidiary Fastweb in Italy, creating a strong competitor in the market. The deal will be fully debt-financed and will strengthen Swisscom’s presence in Italy. The combined entity will benefit from a mix of mobile and fixed infrastructure. The transaction is expected to close in Q1 2025.


Swisscom to Acquire Vodafone Italia for EUR 8 Billion
Switzerland’s Swisscom to Acquire Vodafone Italia, a subsidiary of Vodafone Group. Swisscom announced today that it has entered into binding agreements with Vodafone Group to acquire 100 percent of Vodafone Italia for EUR 8 billion on a debt- and cash-free basis, with the aim of merging it with Fastweb, Swisscom’s subsidiary in Italy.

Synergies for Growth

“Vodafone Italia and Fastweb will bring together complementary high-quality mobile and fixed infrastructures, competencies, and capabilities to create a converged challenger in a market with material growth opportunities,” Swisscom said on Friday. The transaction consideration will be 100 percent cash and will be fully debt-financed.

Swisscom noted that the transaction is a key step for it to achieve profitable growth in Italy. Through this transaction, Swisscom will reinforce its presence in Italy, where it has been operating since 2007 through Fastweb.

Swisscom intends to combine Fastweb’s strengths in fixed connectivity with Vodafone Italia’s mobile services. Reportedly, broadband customers will also benefit through the combination of Fastweb’s end-to-end managed wireline network and Vodafone’s 5G-based Fixed Wireless Access (FWA).

Long-Term Service Agreements

The combined entity and Vodafone Group will enter into several transitional and long-term service agreements, including a brand license agreement, which permits the use of the Vodafone brand in Italy for up to 5 years post-closing, Swisscom said.

Vodafone will provide certain services for an initial total annual service charge of around EUR 350 million, expected to decrease over time. The official release said the existing network expansion targets, such as optical fiber coverage of 75 to 80 percent by 2030, remain unchanged.

The closing of the transaction is expected in Q1 2025, subject to regulatory and other customary approvals.

- Advertisement -spot_img

More articles

LEAVE A REPLY

Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.

- Advertisement -spot_img

Latest article