Swisscom and Vodafone Conclude Italian Deal

Swisscom completed an €8 billion Vodafone Italy acquisition. This is the second of three major deals reshaping the seller’s European operations.

The deal was completed at the end of December 2024, slightly ahead of the original 1Q25 estimate. It came after Vodafone cleared a major regulatory hurdle in a bid to merge its UK operation with local rival 3. In May last year, Vodafone sold its Spanish unit to Zegona Communications for €5 billion.

On first announcing the deal in Italy, the final of the three struck, Vodafone stated its reshaped European operation would be focused on growing markets. Cash from the sale of Vodafone Italy will be used to cut debt with the company also planning to implement share buybacks.

For Swisscom, the purchase ups its play in Italy where it already owns fixed operation Fastweb. It plans to integrate the two in a move it claims heralds a new era in the market. The brands of Fastweb, Vodafone, and Ho are set to be retained, initially at least, under the overarching entity of Fastweb + Vodafone.

CEO of Fastweb + Vodafone Walter Renna said the combined company would be a stronger, more innovative organization to lead Italy into a sustainable digital future, empowering people, businesses, and public administrations. Swisscom expects to benefit from annual synergies amounting to €600 million by combining the two businesses.

As part of the deal, Vodafone will supply Swisscom with various services in Italy for up to five years. The UK-based group is estimated to earn around €350 million from this in the first year.