UPDATE The Italian government has unconditionally approved Swisscom’s acquisition of Vodafone Italia, the Swiss telecom company said in a statement on Tuesday. The transaction “does not determine a threat of serious prejudice to national interests,” the Italian government said in a resolution received by Swisscom.
Swisscom said in March that it would buy Vodafone Italia for $8.7 billion and merge the business with its Italian subsidiary, Fastweb. The deal will create Italy’s second-biggest fixed-line broadband operator behind leading communications service provider, TIM, giving Swisscom a strong presence in the prized business segment. Swisscom also becomes Italy’s leading mobile network operator, according to Inside Towers Intelligence.
Even with the approval, the Italian government could still exercise what it calls ‘The Golden Power’ legislation that grants it special power to “review and impose vetoes, special conditions and prescriptions on certain transactions, investments or corporate resolutions that could threaten or prejudice essential Italian public interests.” This capability applies to companies operating in strategic sectors like defense, energy, and telecommunications.
Swisscom says the completion of the Vodafone Italia transaction overall is on track. It remains subject to further regulatory and other customary approvals. Closing is expected in Q1 2025.
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