The Saudi Telecom Company (STC) is considering acquiring Vodafone Portugal after its deal with Altice Portugal collapsed. This comes from reports by Jornal Económico, citing anonymous sources. STC has not confirmed the news.
STC’s interest in Altice Portugal last year aimed to expand its presence in Europe. However, Altice faced growth issues and a corruption scandal. Pricing disagreements halted the discussions earlier this month. Altice’s owner, Patrick Drahi, aimed to raise €10 billion from the sale, but STC valued it at less than €8 billion.
With the Altice deal off the table, shifting focus to Vodafone Portugal seems logical for STC. Vodafone Portugal has also been exploring M&A opportunities. In 2022, Vodafone Portugal announced plans to acquire Cabonitel, the parent company of Nowo Communications. However, the national competition regulator blocked this deal after a lengthy investigation.
STC and Vodafone Portugal share similar objectives. STC seeks to establish a foothold in Portugal, while Vodafone aims to strengthen its market position. If the acquisition happens, it will mark another step in STC’s expansion in the Iberian region. Last September, STC acquired a €2.1 billion stake in Spanish telecom giant Telefonica, becoming its largest shareholder.
This potential acquisition could reshape the telecommunications landscape in Portugal, offering STC a valuable entry point into the market while helping Vodafone Portugal bolster its presence.
