News
The news follows final regulatory approval last month
Swiss telco Swisscom has completed its acquisition of Vodafone Italia in a move set to reshape the competitive landscape of Italy’s telecoms sector.
The deal, valued at €8 billion, was finalised on December 31 following approval from Italian regulators earlier in the month.
The acquisition will see Vodafone Italia merged with Swisscom’s existing Italian subsidiary, Fastweb. The move will reduce the number of mobile players in the market from five to four and create a new converged (i.e., fixed broadband and mobile services) operator to take on the incumbent, TIM.
As part of the transaction, Vodafone will also provide some services to Swisscom for the next five years.
“I am thrilled about the successful closing, as it strengthens Swisscom Group,” Swisscom CEO Christoph Aeschlimann said in a statement, adding that the company’s ” focus on the Swiss market remains unchanged.”
The acquisition, first announced in March 2024, required approvals from multiple regulators. It received the green light from the European Commission in August and the Italian Communications Authority (AGCOM) in November. However, the deal faced additional scrutiny when the Italian Competition Authority (AGCM) launched a Phase II investigation in September to assess compliance with Italy’s merger control rules.
Swisscom addressed these concerns by introducing various commitments to the deal, including maintaining wholesale services for third-party operators and ensuring transparency in public tenders involving Fastweb or Vodafone Italia. The Italian Ministry of Enterprises and Made in Italy (MIMIT) granted approval on December 19. An independent trustee will oversee compliance with these commitments for three years.
The deal will incur integration costs of up to €200 million, which Swisscom will reflect in its 2024 financial results. Despite this short-term financial impact, Swisscom sees the merger as a crucial investment in long-term growth. The merger is expected to generate approximately €600 million in savings through increased scale and a more efficient cost structure.
The merger positions the combined entity as Italy’s second-largest fixed-line broadband operator behind Telecom Italia (TIM).
This move aligns with Vodafone’s global strategy under CEO Margherita Della Valle to streamline operations and focus on core markets. The company has been divesting underperforming assets, including the sale of its Spanish unit to Zegona Communications for €5 billion, and is currently in the process of mrging its British unit with Three UK.
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