British telecoms giant Vodafone said on Friday that it agreed to sell its Italian unit to Swisscom for eight billion euros in cash, completing efforts to overhaul the UK group’s European operations.
“Swisscom’s purchase of Vodafone Italy and to merge it with its Italian subsidiary, Fastweb, creates a strong contender in the most challenging telco market in Europe,” said Mark Diethelm, an analyst at Vontobel.
The transaction – which is expected to be completed in the first quarter of 2025 – will be paid in cash and financed by debt.
“The industrial logic of this merger is very strong,” Swisscom CEO Christoph Aeschlimann said. “Fastweb and Vodafone Italia are an ideal fit to create high added value for all stakeholders.”
Shares in the two companies jumped following the announcement, with Vodafone up more than 4% in London and Swisscom rising more than 3% on the Swiss stock exchange at midday.
With AFP