Swisscom Finalizes Acquisition of Vodafone Italia for $8 Billion
Deal News | Jan 13, 2025 | EIN
Swisscom has received all necessary approvals for its acquisition of Vodafone Italia, a transaction valued at 8 billion (CHF 7.45 billion). The deal, which was initially announced in February and signed in March, will see Vodafone Italia merged with Swisscom's subsidiary, Fastweb. The combined entity is expected to offer both mobile and broadband services, creating significant synergies of up to 600 million euros annually from 2029. The Italian Competition Authority and the Ministry of Enterprise and Made in Italy have set conditions ensuring that Swisscom provides wholesale services to other operators and maintains transparency in tenders, with compliance monitored by an independent trustee. The completion of this acquisition is projected for the first quarter of 2025, potentially positioning the merged company as the second-largest telecoms provider in Italy, following TIM.
Sectors
- Telecommunications
- Mergers and Acquisitions
Geography
- Italy – Vodafone Italia is based in Italy, and the article discusses the regulatory approvals provided by Italian authorities for the acquisition.
- Switzerland – Swisscom, the acquiring company, is based in Switzerland, making this transaction significant for Swiss corporate expansion.
Industry
- Telecommunications – The article discusses the acquisition of Vodafone Italia by Swisscom. Both companies operate within the telecommunications sector, offering mobile and broadband services.
- Mergers and Acquisitions – The article focuses on the acquisition deal between Swisscom and Vodafone Italia, a classic example of M&A activity in the telecommunications industry.
Financials
- 8 billion – The acquisition price for Vodafone Italia by Swisscom.
- 600 million per year – Expected synergies from the merger of Fastweb and Vodafone Italia starting in 2029.
- 7.3 billion – Projected combined turnover of the merged Fastweb and Vodafone Italia.
- 2.4 billion – Projected combined EBITDA of the merged Fastweb and Vodafone Italia.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Swisscom | Acquiring Company | Company | Swiss national telecommunications company leading the acquisition of Vodafone Italia. |
| Vodafone Italia | Target Company | Company | Italian telecommunications company being acquired by Swisscom. |
| Fastweb | Subsidiary | Company | Swisscom's broadband service subsidiary, set to merge with Vodafone Italia. |
| Italian Competition Authority | Regulatory Authority | Government | Italian government body responsible for overseeing competition, which approved the acquisition. |
| Ministry of Enterprise and Made in Italy (MIMIT) | Regulatory Authority | Government | Italian government ministry that approved the change of control for Vodafone Italia. |