Italy’s competition authority has initiated a detailed investigation into Swisscom’s acquisition of Vodafone Italia, according to a statement from the Swiss telecom company on Thursday. The in-depth review aims to assess the proposed merger under Italian merger control rules.
In March, Swisscom agreed to purchase Vodafone Italia, the Italian unit of Vodafone, for 8 billion euros ($8.8 billion). The merger would combine Vodafone Italia with Swisscom’s existing Italian subsidiary, Fastweb, creating a significant shift in the country’s telecom landscape. If approved, the deal would result in Italy’s second-largest fixed-line broadband operator, trailing only Telecom Italia. Additionally, the merger would position the combined entity as a dominant force in the business sector and a leading player in mobile services.
Related: Vodafone-Three £15 Billion Mega-Merger Faces Delay as CMA Extends Review
Swisscom acknowledged the competition authority’s move, stating that such antitrust reviews are “not uncommon in the telecommunications sector.” The company remains confident in the pro-competitive nature of the acquisition and expects the transaction to be finalized by the first quarter of 2024. “We will continue to work closely and constructively with the Italian competition authority to secure a timely clearance,” the company said in a statement.
Despite the regulatory scrutiny, analysts see limited risk of the deal being blocked. However, there is some concern that the regulator may impose certain conditions or remedies, particularly related to the business sector, where Vodafone and Fastweb hold substantial market shares. According to Reuters, Intesa Sanpaolo analyst Andrea Devita believes that while there is no significant threat to the deal’s success, negotiations over potential remedies could potentially delay the planned completion of the merger.
As Italy’s telecom market remains highly competitive, the outcome of this merger could significantly impact both consumers and businesses. The industry will be closely watching the antitrust authority’s next steps as the process unfolds.
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