Swisscom to acquire Vodafone Italia for €8 billion

DPA
·1 min read
The logo of the Swiss telecommunications company Swisscom is pictured in Basel. Patrick Seeger/dpa
The logo of the Swiss telecommunications company Swisscom is pictured in Basel. Patrick Seeger/dpa

Swiss telecom company Swisscom on Friday said it was set to acquire Vodafone Italia for €8 billion ($8.7 billion) with the aim of becoming a leading challenger in the Italian telecom market.

Swisscom said in a statement that it entered into "binding agreements" with British telecommunications firm Vodafone Group to acquire 100% of its Italian subsidiary "with the aim of merging it with Fastweb," Swisscom's subsidiary in the country.

"Vodafone Italia and Fastweb will bring together complementary high-quality mobile and fixed infrastructures, competencies, and capabilities to create a leading converged challenger in a market with material growth opportunities," Swisscom said, adding that the transaction remained subject to approvals.

"The industrial logic of this merger is very strong," said Swisscom Chief Operating Officer Christoph Aeschlimann. "Fastweb and Vodafone Italia are an ideal fit to create high added value for all stakeholders."