Vodafone sells its Italian business to Swisscom for 8 billion euros
Vodafone is exiting its business in Italy by selling it to Swisscom for 8 billion euros to optimize operations and increase stock value
Vodafone Group Plc is transferring its division in Italy to the Swiss company Swisscom AG for eight billion euros and announces plans to buy back its own shares for four billion euros.
These actions are aimed at improving Vodafone's performance and increasing the value of its shares, as clarified by Bloomberg.
Swisscom plans to merge the acquired Vodafone Italia with its subsidiary Fastweb SpA, according to a statement published on Friday, March 15th.
The deal is expected to be completed in the first quarter of 2025 and has already received support from the Swiss government, the main shareholder of Swisscom.
Margherita Della Valle, CEO of Vodafone, is taking these measures amid falling stock prices and calls for the sale or merger of unprofitable parts of the company.
The Italian segment of Vodafone, facing difficulties due to high competition and low tariffs, is also set to be sold, as is the division in Spain, while plans to merge the British branch with CK Hutchison Holdings Ltd are in progress.
Della Valle calls the sale an important step in changing the structure of Vodafone's European segment, which will now focus on emerging markets where the company holds strong positions to ensure sustainable growth in Europe.
After selling the Spanish division, the total amount from both deals will amount to about 12 billion euros, and the planned share buyback for 4 billion euros will strengthen Vodafone's financial position.
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