EC Approves Swisscom – Vodafone Italia Deal

Swisscom said that the proposed €8 billion purchase of Vodafone’s Italian unit is on track for completion in early 2025 after being cleared by the European Commission. The deal, however, still has to pass a competition probe in Italy.

The transaction had been waived unconditionally under European Union foreign subsidies regulation. This adds to the green light already gained from the Swiss Competition Commission and the Presidency of the Council of Ministers in Italy. Swisscom noted the deal still needed to get through other regulatory approvals including the Italian Competition Authority (AGCM), but believes the acquisition is on track to be completed in 2025.

The AGCM opened a second phase of investigation into the deal earlier this month, citing potential competition issues related to the country’s fixed wholesale and retail markets as a result of the proposed buyout. Swisscom’s purchase of Vodafone Italia has been on the cards since March. At the time, the Swiss company positioned the move as significantly reinforcing its position in Italy, where it already runs fixed player Fastweb.

“By combining Fastweb’s strengths in fixed connectivity with Vodafone Italia’s leading position in mobile services, the new entity stands to deliver substantial benefits to Italian consumers, businesses, and the country,” the company argued. It claims the combination of the two will provide increased competition in the country’s communications market and accelerate Italy’s digital transformation.