Swisscom to acquire Vodafone Italia

Swisscom to acquire Vodafone Italia, creating a leading converged challenger in Italy

Swisscom has entered into binding agreements with Vodafone Group Plc in relation to the acquisition of 100% of Vodafone Italia for EUR 8 billion on a debt and cash free basis with the aim of merging it with Fastweb, Swisscom’s subsidiary in Italy. The transaction consideration will be 100% cash and will be fully debt-financed.

Vodafone Italia and Fastweb will bring together complementary high-quality mobile and fixed infrastructures, competencies, and capabilities to create a leading converged challenger in a market with material growth opportunities.

The increased scale, more efficient cost structure and significant annual run-rate synergies of EUR ~600 million will enable the combined entity to unlock significant value for all stakeholders, sustain investments in the Italian telecommunication market and offer innovative, competitively priced converged services, improving performance and user experience for customers across all market segments. The transaction is a key step for Swisscom to achieve its strategic objective of profitable growth in Italy.

Swisscom intends to increase the dividend and expects to retain its excellent corporate credit rating. The transaction remains subject to regulatory and other customary approvals.