EU Commission approves takeover of Vodafone Italia by Swisscom
Swisscom receives approval from the EU Commission for the takeover of Vodafone Italia. The green light from the Italian competition authority remains pending.
The Swisscom headquarters.
(Image: Swisscom)
The EU Commission has given its approval to the initiated takeover of Vodafone Italia by Swisscom, the largest Swiss telecommunications group announced yesterday. It was already rumored at the beginning of the year, then confirmed by Swisscom in February 2024: Yes, Swisscom has plans to acquire Vodafone Italia S.p.A. and is conducting exclusive negotiations with the Vodafone Group.
Purchase price 8 billion euros
In August 2024, Swisscom then submitted the official notification of the transaction to the EU Commission's Directorate-General for Competition in accordance with the Regulation on subsidies from third countries. On September 23, the EU Commission announced that the preliminary examination had been completed and that the transaction could therefore be completed without reservations.
In addition, the merger has already received the unconditional approval of the Italian Presidency of the Council of Ministers and the Swiss Competition Commission.
According to the Swiss telecommunications company, the intention is to merge Vodafone Italia with the Milan-based Swisscom subsidiary Fastweb. This would create the second largest telecoms provider in Italy behind the market leader TIM (Telecom Italia Mobile). Swisscom wants to spend eight billion euros on the takeover. According to Swisscom, the financing of the deal has now been secured.
Italy wants to examine in depth
Further regulatory approvals are still pending, according to Swisscom, including that of the Italian competition authority. The latter announced on September 11, 2024 that it had initiated an in-depth investigation (Phase II) to examine the takeover in accordance with Italian merger control regulations.
Phase II investigations are not unusual in the telecommunications sector, according to Swisscom, in which the Swiss Confederation holds 51% of the share capital. In a press release, the company remains convinced that the transaction is pro-competitive. Swisscom expects the transaction to be completed in the first quarter of 2025.
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