Swisscom is continuing its expansion in Italy with the planned €8 billion (CHF 7.6 billion) takeover of mobile operator Vodafone Italia. The deal is expected to make the Swiss company the second-largest operator south of the Alps.
The Swiss group has confirmed that it is in “exclusive negotiations” with its British counterpart regarding an all-cash acquisition of Vodafone Italia, as stated in a press release published on Wednesday. Upon completion of the takeover, the target company is set to merge with Fastweb, the Swiss firm’s Italian subsidiary.
The enterprise value of Vodafone Italia has been calculated based on a multiple of 26 for operating cash flow and a multiple of 7.6 for earnings before interest, taxes, depreciation and amortisation (EBITDA) expected this year, Vodafone said in a separate statement.
The British giant stated that it has “entered into exclusive negotiations with a number of parties to explore market consolidation in Italy”. However, both groups warned that the outcome of the negotiations was still open.
According to Vodafone Group’s annual report, Vodafone Italia had 5,733 employees last year, with sales of €4.8 billion (down 4.2%) and adjusted EBITDA of €1.5 billion.
Fastweb, with over 3,100 employees, reported a 6.1% increase in revenues to €2.63 billion in 2023, while EBITDA fell by 6.6% to €798 million. The Italian subsidiary boasts 3.5 million customers in a telecoms market estimated at €12 billion, which is described as “one of the most competitive in Europe” for mobile communications, as detailed in its annual report by Swisscom.
The Swiss company expects this takeover to increase its enterprise value and cash flow. The transaction should also have a positive effect on dividends.
Translated from French by DeepL/sp
This news story has been written and carefully fact-checked by an external editorial team. At SWI swissinfo.ch we select the most relevant news for an international audience and use automatic translation tools such as DeepL to translate it into English. Providing you with automatically translated news gives us the time to write more in-depth articles. You can find them here.
If you want to know more about how we work, have a look here, and if you have feedback on this news story please write to english@swissinfo.ch.
Switzerland to introduce flight passenger database
This content was published on
Switzerland plans to introduce a flight passenger database to collect and process personal data in a bid to combat terrorism and serious crime.
Government plans to invest over CHF16bn in Swiss rail network
This content was published on
The federal government intends to invest CHF16.4 billion ($18.1 billion) in railway infrastructure between 2025 and 2028, CHF2 billion more than for the current period.
Swiss to vote on pension reform and biodiversity in September
This content was published on
Swiss citizens will vote on occupational pension schemes and a biodiversity initiative on September 22, the Federal Council announced on Wednesday.
Ukraine peace talks: 50 countries have confirmed participation
This content was published on
To date, 50 countries out 160 invited delegations have confirmed they will attend the Ukraine peace conference, held in central Switzerland in mid-June, according to Swiss public radio, RTS.
Federer-backed On boosts forecast after sneaker demand rises
This content was published on
Swiss footwear company On Holding AG posted strong first-quarter revenue, boosted by demand for its running shoes and new line of training apparel.
Michael Schumacher’s watches fetch CHF4 million at Swiss auction
This content was published on
Watches belonging to Formula 1 great Michael Schumacher sold for around CHF4 million ($4.41 million) at auction house Christie's in Geneva on Tuesday.
Macron will attend Swiss summit on Ukraine, says Zelensky
This content was published on
French President Emmanuel Macron will attend the peace conference on Ukraine at the Swiss Bürgenstock resort next month, according to Volodymyr Zelensky.
Swiss parliamentarian calls for ‘zero-trust approach’ amid Huawei espionage claims
This content was published on
The Chinese network supplier is said to have deployed spies in Denmark. This worries Swiss politicians as Huawei has a strong presence in Switzerland.
You can find an overview of ongoing debates with our journalists here . Please join us!
If you want to start a conversation about a topic raised in this article or want to report factual errors, email us at english@swissinfo.ch.