Swisscom said the acquisition of Vodafone Italia is expected to be completed during Q1 2025
Swiss carrier Swisscom confirmed it has entered into binding agreements with U.K carrier Vodafone Group for the acquisition of 100% of Vodafone Italia for EUR 8 billion ($8.71 billion) on a debt and cash free basis.
Swisscom said it aims to merge Vodafone Italia with Italian telco Fastweb, Swisscom’s subsidiary in Italy.
The combination of Fastweb’s end-to-end managed wireline network and Vodafone’s 5G-based Fixed Wireless Access (FWA) will enable the creation of a converged carrier in the domestic market. The increased scale, more efficient cost structure and significant annual run-rate synergies of nearly EUR 600 million will enable the combined entity to unlock significant value for all stakeholders and offer innovative converged services, the Swiss telco said.
Swisscom noted that the transaction is a key step for the company to achieve its strategic objective of profitable growth in Italy. Through this transaction Swisscom reinforces its presence in the Italian market, where it has been operating since 2007 through Fastweb. The transaction remains subject to regulatory and other customary approvals, the Swiss carrier said, adding that the transaction is expected to be fully completed in the first quarter of 2025.
As part of the deal, 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 five years post-closing.
The deal also stipulates that Swisscom and Vodafone Group are exploring a closer commercial relationship to enable collaboration across a broad range of areas, beyond Italy. The key areas of commercial collaboration that Vodafone and Swisscom are exploring include IoT, enterprise services and solutions, procurement, operational shared services and roaming.
Christoph Aeschlimann, CEO of Swisscom, said: “The industrial logic of this merger is very strong. Fastweb and Vodafone Italia are an ideal fit to create high added value for all stakeholders. As a result, private and business customers will benefit from the most comprehensive offer. Swisscom will also be strengthened as a whole, allowing us to continue making significant investments in the Swiss and Italian market.”
“By bringing together Vodafone Italia and Fastweb, we are enabling the creation of a strong converged telco, well positioned to compete in the Italian market. And we are opening the opportunity to establish a broader commercial partnership between Swisscom and Vodafone,” said Margherita Della Valle, CEO of Vodafone Group,
In a separate statement, Vodafone said that “with the sale of Vodafone Italy and Vodafone Spain, together with the merger of Vodafone UK and Three UK, Vodafone will now focus its operations in Europe on growing markets.”
From April 1, Vodafone said it will implement changes in its organizational structure to operate in five business divisions: Germany; European Markets; Africa; Vodafone Business and Vodafone Investments.
“Going forward, our businesses will be operating in growing telco markets – where we hold strong positions – enabling us to deliver predictable, stronger growth in Europe. This will be coupled with our acceleration in B2B, as we continue to take share in an expanding digital services market,” said Della Valle.
