Regulators in Spain have endorsed Zegona’s acquisition of Vodafone Spain, with the Council of Ministers of the Spanish government granting approval for the transaction regarding foreign direct investment into Spain.
In October, Vodafone declared that it had finalized a binding agreement with Zegona to sell its entire stake in Vodafone Spain for EUR 5 billion.
Related: Vodafone Sells Spanish Business to Zegona Communications
“The sale of Vodafone Spain is a key step in right-sizing our portfolio for growth and will enable us to focus our resources in markets with sustainable structures and sufficient local scale,” said Vodafone CEO, Margherita Della Valle, in a statement. “I would like to thank our entire team in Spain for their dedication to our customers and relentless determination to improve our organic performance. However, the market has been challenging with structurally low returns.”
The government highlighted that Zegona has provided several commitments during the authorization process, outlined in a strategic and financial plan. Zegona’s assurances include ensuring service continuity; investing in future developments, particularly in 5G mobile coverage; and implementing measures to ensure financial stability.
Additionally, Zegona has pledged to uphold significant contracts with the national administration and maintain stability in the company’s strategic assets, as stated by the Council of Ministers.
Vodafone and Zegona previously said that they would establish a brand license agreement allowing the use of the Vodafone brand in Spain for up to 10 years following completion. Additionally, both parties will engage in other transitional and long-term arrangements for various services, such as procurement access, IoT, roaming, and carrier services.
