Swisscom (SCMN) announced on Friday that it would acquire Vodafone Italia in an EUR 8 billion all-cash deal and merge the business with its Fastweb subsidiary in Italy.
The transaction is expected to close in the first quarter of 2025 and will not require a shareholder vote.
The deal is expected to form the second-largest fixed-line broadband operator in Italy following TIM, having solid positions in the prized business segment.
“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 in a statement, cited by Reuters.
In February, the company had said the deal would improve its cash flow and would have “a positive impact on its dividend policy.”
Stock Performance
The shares of Swisscom AG (SCMN) closed 0.32% (CHF 1.60) lower at CHF 503.80 on Thursday, as they extended the losses from the previous two market sessions.
The company’s total market cap now stands at CHF 26.098 billion.
The shares of Swisscom AG (SCMN) went down 0.12% in 2023, compared with a 3.81% gain for the benchmark index, SMI (SSMI).
The company’s shares have retreated 0.43% so far this year.
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