Swisscom: Italy’s ComCo examines Vodafone takeover in depth
Published: Thursday, Sep 12th 2024, 08:40
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The planned Swisscom takeover of Vodafone Italia is being scrutinized more closely. The Italian competition authority has initiated an in-depth review (Phase II), as announced on Wednesday.
"Phase II investigations are not unusual in the telecommunications sector," Swisscom explained on (today's) Thursday. "Swisscom remains convinced that the transaction is pro-competitive." The Swiss industry leader officially notified the €8 billion takeover of Vodafone Italia to the Italian competition authority (Autorità Garante della Concorrenza e del Mercato) in mid-August.
Overall, the 8 billion euro takeover of Vodafone Italia is proceeding according to plan, Swisscom now wrote. To this end, the Swiss telecoms provider secured the financing for the purchase price in May. It has also received unconditional approval from the Swiss Competition Commission (Weko) and the Italian Presidency of the Council of Ministers on the basis of the Golden Power Law.
In addition, the listing rules in the UK were changed as of July 29, 2024. This means that the British telecommunications company Vodafone Group does not have to have the transaction approved by the Annual General Meeting.
Completion of the deal in the 1st quarter of 2025
The closing of the transaction is still subject to further regulatory approvals, it was announced on Thursday. Swisscom continues to expect the transaction to be completed in the first quarter of 2025. "We will continue to work closely and constructively with the Italian competition authority to obtain approval in a timely manner," the Group wrote.
The "blue giant" announced its plans to take over Vodafone Italia at the end of February. The purchase agreement was then signed in mid-March. From the Federal Council's point of view, all conditions for the acquisition were met.
Future number two
Vodafone Italia is to be merged with the Swisscom subsidiary Fastweb. Fastweb boss Walter Renna has been appointed as the new head of the joint company in Italy.
Vodafone Italy and Fastweb complement each other well: while Fastweb has a broadband network, Vodafone Italy contributes a mobile network. The merger of Fastweb and Vodafone Italy is expected to generate synergies of EUR 600 million per year from 2029, according to earlier statements.
According to the information at the time, this will create the second-largest telecoms provider in Italy behind the top dog TIM, with a combined turnover of EUR 7.3 billion and a combined operating profit before depreciation and amortization (EBITDA) of EUR 2.4 billion.
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