Swiss telco Swisscom has entered into binding agreements with Vodafone Group to acquire 100% of Vodafone Italia for €8 billion.
The aim is to merge Vodafone Italia with Fastweb, Swisscom’s subsidiary in Italy, creating a leading converged challenger in a market with material growth opportunities, according to Swisscom.
“Swisscom has been operating successfully in Italy since the acquisition of Fastweb in 2007. Over this period, we have built a strong track record of investment and profitable growth in Italy. The industrial logic of this merger is very strong,” said Christoph Aeschlimann, CEO of Swisscom. “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.”
Margherita Della Valle, CEO of Vodafone Group, added: “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.”
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.
Swisscom and Vodafone Group are also 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.
The transaction remains subject to regulatory and other customary approvals. Swisscom expects to close the deal in Q1 2025.