Swisscom's $8.7 billion acquisition of Vodafone Italy will create the second-largest telecom company in Italy, merging around 23 million subscribers, while aiming for significant operational synergies and enhanced market competitiveness.

Overview of the Deal

The Italian government has approved Swisscom's €8 billion acquisition of Vodafone Italy, a transaction valued at $8.7 billion, announced on March 15, 2024. This merger has been cleared unconditionally under the golden power legislation, which allows for government oversight on significant corporate transactions. The deal will integrate Vodafone Italy with Swisscom's subsidiary, Fastweb, and is expected to conclude in the first quarter of 2025, pending further regulatory approvals.

This merger is poised to create Italy's second-largest telecommunications company, combining Fastweb's 3.4 million customers with Vodafone's 20 million subscribers. The acquisition will be financed through debt and cash. Vodafone's CEO has emphasized that this merger strengthens their position in expanding telecom markets and accelerates their business-to-business (B2B) growth.

“By bringing together Vodafone Italia and Fastweb, we are enabling the creation of a strong converged telco, well positioned to compete in the Italian market. A