British mobile phone giant, Vodafone, has completed the sale of its Italian unit to Swisscom for EUR 8 billion euros (USD 8.3 billion) as part of a Europe-wide restructuring.
“The completion of the sale of Vodafone Italy is the final step in the reshaping of Vodafone’s European footprint,” a spokesman said in a statement. It follows agreements to sell Vodafone’s Spanish division and the merger of its UK unit with rival, Three, owned by Hong Kong conglomerate, CK Hutchison.
Vodafone added that it will continue to provide certain services to Vodafone Italy for up to five years. Proceeds from the Swiss transaction will go towards reducing Vodafone’s net debt, while up to EUR 2 billion will be redistributed to shareholders.
The company previously rejected a proposal from iliad Group to merge their Italian businesses, before beginning advanced talks with Swisscom in March.
Vodafone has undergone continuous transformation under the leadership of Chief Executive Officer, Margherita Della Valle, to help slash costs. In 2023, the group cut more than 10% of its global workforce.
Last month, UK regulators approved a tie-up between Vodafone and Three—set to create Britain’s biggest mobile operator—after the companies pledged to invest billions of pounds to roll out a high-speed 5G network across the country.
Vodafone, which returned to profit in the first half of 2024, saw its share price edge higher on London’s top-tier FTSE 100 index following the announcement.
Acquisition Timeline:
- Vodafone in Exclusive Talks with Swisscom to Sell Italian Unit
- Vodafone Group to Sell Italian Business to Swisscom
- Swisscom Confirms EUR 8 Billion Vodafone Italy Acquisition Remains on Track
- Swisscom Faces Phase II Probe into Vodafone Italy Deal
- EU Clears Swisscom’s EUR 8 Billion Bid for Vodafone Italy
- AGCOM Greenlights Swisscom’s Acquisition of Vodafone Italia
- Italian Authorities Approve Swisscom’s Vodafone Italia Transaction
