Swisscom AG (SWZCF.PK, SCMWY.PK), a leading telecom service provider, has announced that the European Union Commission has granted clearance for its proposed acquisition of Vodafone Italia S.p.A. The acquisition, involving the Italian subsidiary of Vodafone Group Plc (VOD.L, VOD), complies with the EU's Foreign Subsidies Regulation.
Despite this approval, the deal still requires additional regulatory clearances, particularly from the Italian Competition Authority, which recently initiated an in-depth investigation (Phase II) on September 11 to examine the acquisition within the framework of Italy's merger control laws.
Swisscom remains confident about finalizing the Vodafone Italia transaction by the first quarter of 2025, as initially projected. The company had announced its intention to acquire Vodafone Italy for an enterprise value of €8 billion in March. Subsequently, the deal was formally notified to the EU Commission’s Directorate-General for Competition under the Foreign Subsidies Regulation in mid-August.
As of Monday, the EU Commission confirmed that the waiting period has concluded, thereby giving unconditional approval for the transaction. Swisscom also disclosed that it had secured financing for the €8 billion purchase price by May 2024. Both the Presidency of the Council of Ministers in Italy and the Swiss Competition Commission have provided their unconditional approvals.
Post-acquisition, Swisscom intends to merge Vodafone Italia with its existing Italian subsidiary, Fastweb.
In market activity, Swisscom shares were trading at CHF 547.00, reflecting a 0.36 percent decline.
