Swisscom finalises takeover of Vodafone Italy
Swisscom has finalised its billion-euro takeover in Italy. The largest Swiss telecoms group has signed the purchase agreement for Vodafone Italy. Swisscom will pay €8 billion (CHF7.7 billion) for the mobile operator.
Vodafone Italy is to be merged with Swisscom’s Milan-based subsidiary Fastweb, the “blue giant” announced in a press release on Friday. This will create the second-largest telecoms provider in Italy (behind the market leader TIM) with a combined turnover of €7.3 billion and combined earnings before interest, taxes, depreciation and amortisation (EBITDA) after leasing of €2.4 billion. The deal was announced at the end of February.
Vodafone Italy and Fastweb complement each other well: while Fastweb has a broadband network, Vodafone Italy contributes a mobile network. This will enable the two companies to eliminate their respective weaknesses in the Italian telecoms market and save costs. Previously, Fastweb had to rent capacity from other mobile phone providers for its mobile phone customers.
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Fastweb’s mobile phone customers will now be able to make calls using the Vodafone mobile network in Italy. This will enable the joint company to offer customers bundled landline and mobile services. The merger of Fastweb and Vodafone Italy is expected to generate synergies of €600 million per year.
The Federal Council has “taken note” of the takeover of Vodafone Italy by Swisscom. It said Swisscom, in which the federal government is the majority shareholder, had “fulfilled all risk-minimising conditions”.
The Federal Council was informed of the purchase intention “at an early stage”, the Federal Council announced on Friday. The takeover does not conflict with its strategic objectives.
One of the Federal Council’s most important expectations is that the Italian and Swiss businesses remain organisationally and structurally separate. Swisscom will still not be allowed to take on any universal service contracts abroad, it said.
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For Swisscom, the takeover means a “consolidation” of its Italian subsidiary Fastweb, which it intends to merge with Vodafone Italy. The decision on the transaction lies within the authority and responsibility of the Swisscom Board of Directors.
Separately, the Federal Council intends to clarify questions regarding privatisation or partial privatisation over the course of this year. This issue will fall under the federal government’s corporate governance guidelines.
Adapted from German by DeepL/kc/amva
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