Swisscom acquires Vodafone Italia

The deal, worth €8 billion in cash, will see Fastweb’s fixed connectivity married with Vodafone Italia’s mobile services, and the combined entity “will create a leading converged challenger in the Italian market,” states the release.

It will have 20 million mobile and 5.6 million fixed lines, 20,000 mobile radio sites and a proprietary fixed network of over 74,000 km. It will also have the financial capacity to invest in infrastructure and innovation, we’re told, thanks to increased scale, and a more efficient cost structure.

The two companies will be managed by a unified executive committee, and will operate under the brand Fastweb + Vodafone. Vodafone and Swisscom have agreed that Vodafone will continue to provide ‘certain services’ to Vodafone Italy for a period of up to 5 years.

“With the official closing, the most important operation of consolidation in the Italian telecommunications market in recent years is completed,” said Walter Renna, Fastweb + Vodafone CEO. “We will now start the integration process between the two companies to quickly release its potential and offer even more innovative and high-performance services to customers in all market segments. Fastweb + Vodafone will be a company built on a culture of inclusion and transparency, and where the people, their experiences and expertise are at its core”

Swisscom CEO Christoph Aeschlimann added: "I am thrilled about the successful closing, as it strengthens Swisscom Group. The improved positioning in Italy will create long-term value for all stakeholders – thanks to growing cashflows and dividends in the future.”

In its release Vodafone said proceeds from the sale will be used to reduce Vodafone Group net debt, and it will target to return to shareholders up to €2 billion.

Late last month the Italian Ministry of Enterprises and Made in Italy (MIMIT) gave the nod for Swisscom to acquire Vodafone Italia, having accepted behavioural remedies proposed by Swisscom including “continued provision of wholesale services to interested operators in line with Fastweb's current practice and the sharing of information in any public tender for fixed telephony and fixed connectivity services issued by the public administration, where Fastweb or Vodafone Italia is the current supplier.”