La European Commission gave the green light for the acquisition of Vodafone Italy by Swisscom, following a preliminary examination conducted under the Foreign Subsidies Regulation. “This is an important step towards obtaining the regulatory approvals required for the conclusion of the transaction,” Swisscom said in an official press release. The transaction can then proceed without reservations from Brussels. For thefinal ok, the positive opinion is still missing of the Italian antitrust, which brought the investigation into phase 2 a few days ago. The Italian government, however, has already authorized the operation without conditions under the Golden Power. Swisscom to acquire Vodafone Italy for 8 billion euros, with the aim of merging it with Fastweb and creating a new telecommunications giant.
Acquisition of Vodafone Italy: the OK from the Directorate General for Competition
Swisscom had notified the transaction to the Directorate General for Competition on 19 August 2024, as required by the European regulation. On 23 September, the European Commission confirmed the conclusion of the preliminary examination, determining that the transaction does not raise issues regarding foreign subsidies, thus giving its formal consent to the operation. “The acquisition is proceeding according to the pre-established timetable,” the Swiss group stressed.
The investigation of the Italian Antitrust
The Italian Competition and Market Authority (AGCM) has, instead, initiated an in-depth investigation (Phase II) on September 11, to verify the impact of the operation on competition in the local market. Swisscom has clarified that such investigations are not unusual, especially in a sector such as telecommunications, which is characterized by complex operations. “The operation does not harm competitiveness”, reiterated the Swiss group, adding that it will continue to collaborate closely with the AGCM to obtain all the necessary approvals within the expected timeframes.
The final approval by the Italian antitrust authority will be crucial for the closing of the operation. “The Phase II investigation is not unusual, but could lead to requests for remedies to mitigate any risks of reduced competition,” commented the research office of Intesa Sanpaolo.
Approvals already obtained: Golden Power and Swiss competition
In addition to the approval of the European Union, Swisscom has already received the unconditional green light from the Italian Presidency of the Council of Ministers in relation to the Golden Power legislation. This mechanism, which allows the Italian government to intervene in strategic transactions, has not raised any objections, since the operation does not pose a threat to national interests. In parallel, the Swiss Federal Competition Commission gives its unconditional approval, confirming the non-controversial nature of the acquisition.
Swisscom: “Completion expected in 2025”
Swisscom has expected the transaction to will be completed by the first quarter of 2025. The payment will be on a “cash and debt free” basis, and the merger between Vodafone Italia and Fastweb will create a new leading convergent operator in the Italian market. “We expect the transaction to be completed within the agreed timeframe,” the Swiss company confirmed.
The merger between Vodafone Italy and Fastweb will have a strong impact on the telecommunications sector in ItalyThe two companies, which together generate around 7 billion euros in revenue, will allow Swisscom to consolidate its position, combining Fastweb's fixed connectivity with Vodafone's leadership in mobile services.
