Swisscom Offers €8 Billion to Buy Vodafone Italy

Swisscom entered into exclusive talks to buy Vodafone Italy. The all-cash deal is valued at €8 billion and is a part of a plan to combine it with Fastweb, its subsidiary in the country.

The proposed deal came after Vodafone spurned an attempt by the Iliad Group in January to form a joint venture that would have combined the companies’ respective operations in the country. The planned merger of Vodafone Italia and Fastweb will result in the second-largest fixed-line broadband operator in Italy behind TIM.

Swisscom explained the deal will bring together complementary mobile and fixed infrastructures, competencies, and capabilities to create a leading converged challenger. Vodafone stated it has engaged extensively with several parties to explore market consolidation in Italy but believes the proposed Swisscom deal delivered the best combination of value creation, upfront cash proceeds, and transaction certainty for its shareholders.