Swiss telecommunications giant, Swisscom, has successfully completed its acquisition of Vodafone Italia. This strategic acquisition, valued at €8 billion, has received final regulatory approval from Italian authorities. The transaction is set to shake up Italy’s telecom industry by merging Vodafone Italia with Swisscom’s existing Italian subsidiary, Fastweb. This merger reduces the number of mobile operators in the market from five to four, showcasing a decisive move to challenge the market leader, TIM.
As part of the acquisition, Vodafone will continue to provide certain services to Swisscom for the next five years. “I am thrilled about the successful closing, as it strengthens Swisscom Group,” mentioned Swisscom CEO Christoph Aeschlimann, highlighting an unwavering focus on the Swiss market.
Announced initially in March 2024, the acquisition required approvals from multiple regulatory bodies, including the European Commission and the Italian Communications Authority. Intense scrutiny from Italy’s Competition Authority led to a Phase II investigation. However, Swisscom navigated these challenges by proposing commitments such as maintaining wholesale services and ensuring transparency in public tenders. An independent trustee will ensure these pledges are upheld for three years.
Although the deal will incur integration costs of up to €200 million, Swisscom views this as a worthy investment for future growth. The merger is anticipated to generate about €600 million in savings by leveraging increased scale and boosting efficiency. Through this acquisition, the combined entity will become Italy’s second-largest fixed-line broadband operator, trailing only Telecom Italia (TIM).
This move aligns with Vodafone’s global strategy, aiming to optimize operations and concentrate on core markets. The strategy, led by CEO Margherita Della Valle, involves shedding underperforming assets, such as the recent sale of its Spanish division to Zegona Communications for €5 billion, and merging its British operations with Three UK.
