Swisscom maintains a positive outlook on its proposed acquisition of Vodafone Italy despite the Italian competition regulator initiating an in-depth review of the deal. The Autorità Garante della Concorrenza e del Mercato (AGCM) has advanced the investigation into the EUR 8 billion transaction to a Phase II analysis.
Swisscom’s move to acquire Vodafone Italia, announced in March, aims to merge it with its Italian subsidiary, Fastweb, bolstering its position in the market. Currently, Fastweb holds a smaller share in the mobile sector, but the merger is expected to enhance its overall market presence, particularly in the broadband space, where Vodafone serves 16.4% of the market and Fastweb 13.5%.
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The deal would create a more formidable competitor to TIM, the market leader, although the combined entity would still trail TIM by just over seven percentage points. This shift could benefit Italy’s broadband market by increasing competition, which might address some antitrust concerns.
Despite the Phase II review, Swisscom expressed confidence in the transaction’s pro-competitive nature. “Phase II reviews are not uncommon in the telecommunications sector,” the company stated. “Swisscom remains convinced that the transaction is pro-competitive. We will continue to work closely and constructively with the Italian Competition Authority to secure a timely clearance.”
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As initially planned, the Swiss telco anticipates closing the deal by the first quarter of 2025. The acquisition’s financing is secured through EUR 5 billion in bonds and a EUR 3 billion bank loan.
In addition to securing approval from Italy’s Presidency of the Council of Ministers under the Golden Power legislation and receiving approval from the Swiss Competition Commission, Swisscom awaits final clearance from the AGCM.
