- Swisscom acquires Vodafone Italia in €8 billion deal
- It no longer operates networks in Italy or Spain
- Vodafone focuses on growth in the UK
Vodafone has confirmed the completion of the sale of its Italian business (Vodafone Italia) to Swisscom AG in an €8 billion ($8.3 billion) deal.
The Swiss company Swisscom, which operates mainly in its home country through its own network and virtual mobile network operators such as Coop Mobile, already has some market share in Italy with its Fastweb brand, which it partially acquired in 2007 (3,000 million euros for 82%) before acquiring it completely in 2010.
As part of the deal, Vodafone agreed to continue providing certain services in Italy for up to five years after its termination.
Vodafone sells its Italian subsidiary to the Swiss giant
The company confirmed that the proceeds from its sale would be used to reduce the Group’s net debt.
Walter Renna, CEO of Swisscom’s Fastbweb, will lead the new Fastweb + Vodafone brand.
The sale of Vodafone Italia follows the sale of its Spanish business at the end of 2023: the deal with Zegona Communications was worth €4.1 billion in cash.
At the time, the company’s CEO, Margherita Della Valle, said the sale would “allow [Vodafone] concentrate [its] resources in markets with sustainable structures and sufficient local scale.”
Vodafone has also had a busy few months in the UK, following CMA approval of its merger with Three in early December 2024. The deal, which will benefit “tens of millions of consumers and businesses”, will see two former network giants to invest £11 billion ($13.7 billion) in the UK’s 5G infrastructure.
Margherita Della Valle commented: “Today’s approval releases the handbrake on the UK telecommunications industry, and increased investment will take the UK to the forefront of European telecommunications.”
Speaking about the sale of Vodafone’s Italian business, Swisscom CEO Christoph Aeschlimann said: “The improved positioning in Italy will create long-term value for all stakeholders, thanks to growing cash flows and dividends in the future. “.
