Swisscom reiterated that it expects the transaction to complete in the first quarter of 2025
Italy’s communications authority AGCOM has cleared the acquisition of Vodafone Italia by Swisscom with regard to the effects of the transaction on the Italian market.
In a release, Swisscom noted that this approval is another important step on the way to securing the regulatory approvals needed to fully complete the transaction.
Following the announcement of the acquisition of Vodafone Italia on March 15, 2024, Swisscom notified the transaction to the AGCOM on September 17, 2024.
Swisscom said it already received unconditional approval from the Presidency of the Council of Ministers in Italy, the Swiss Competition Commission and the European Commission.
The Swiss telco noted that the transaction is still subject to two other regulatory approvals, including that of the Italian Competition Authority (AGCM). The latter announced on September 11, 2024 that it had opened an in-depth investigation to assess the acquisition under Italy’s merger control rules.
Swisscom reiterated that it expects the transaction to complete in the first quarter of 2025.
In March, Swisscom confirmed it had entered into binding agreements with U.K carrier Vodafone Group for the acquisition of 100% of Vodafone Italia for EUR 8 billion (currently $8.43 billion) on a debt and cash free basis.
Swisscom said it aims to merge Vodafone Italia with Italian telco Fastweb, Swisscom’s subsidiary in Italy.
The combination of Fastweb’s end-to-end managed wireline network and Vodafone’s 5G-based Fixed Wireless Access (FWA) will enable the creation of a converged carrier in the domestic market, Swisscom said, adding that the increased scale, more efficient cost structure and significant annual run-rate synergies of nearly EUR 600 million will enable the combined entity to unlock significant value for all stakeholders and offer innovative converged services.
Swisscom said that the transaction is a key step for the company to achieve its strategic objective of profitable growth in Italy. Through this transaction Swisscom reinforces its presence in the Italian market, where it has been operating since 2007 through Fastweb.
As part of the deal, the combined entity and Vodafone Group will enter into several transitional and long-term service agreements, including a brand license agreement, which permits the use of the Vodafone brand in Italy for up to five years post-closing.
The deal also stipulates that Swisscom and Vodafone Group are exploring a closer commercial relationship to enable collaboration across a broad range of areas, beyond Italy. The key areas of commercial collaboration that Vodafone and Swisscom are exploring include IoT, enterprise services and solutions, procurement, operational shared services and roaming.
Christoph Aeschlimann, CEO of Swisscom, previously said that private and business customers will benefit from the most comprehensive offer after the acquisition.
