Page 109 - SAMENA Trends - Jan-Mar 2024

REGULATORY & POLICY UPDATES SAMENA TRENDS

Swisscom to Acquire Vodafone Italia for €8bn

Swisscom has announced a binding deal to acquire Vodafone’s high added value for all stakeholders,” he continued. The deal
Italian business unit for €8 billion (£6.8bn). After the deal’s will allow Swisscom to reinforce its Italian operations, a market
completion, Swisscom will merge Vodafone’s Italian unit with it has been operating in since 2007 through Fastweb. For some
Fastweb, Swisscom’s Italian subsidiary to create Italy’s second- time, Vodafone has been reshaping its operations globally. In
largest fixed-line broadband operator behind Telecom Italia (TIM). October last year, the company sold 100% of its Spanish unit
This, they said, will create around €600 million in savings through to Zegona Communications for €5 billion, and are currently in
increased scale and a more efficient cost structure. As part of the proceedings to merge business with Three in the UK. “Today, I
transaction, Vodafone will provide some service to Swisscom for am announcing the third and final step in the reshaping of our
the next five years. “The industrial logic of this merger is very European operations,” said Vodafone’s CEO Margherita Della Valle
strong,” said Swisscom’s CEO Christoph Aeschlimann in a press in a company announcement. “Going forward, our businesses will
release. “Fastweb and Vodafone Italia are an ideal fit to create be operating in growing telco markets – where we hold strong
positions – enabling us to deliver predictable, stronger growth in
Europe.” Additionally, the company’s announcement stated that it
also intends to focus on its B2B sector, which it says is its “biggest
opportunity”, to focus on. Vodafone also stated that from 1st April
this year, it will move most of its central operations to a a fully
commercial model, allowing them to respond quickly and flexibly
to demand changes. The deal is subject to standard regulatory
approval, and is expected to close in the first quarter of next
year. Also on this date, the company will be reorganized into five
business divisions: Germany; European Markets; Africa; Vodafone
Business; and Vodafone Investments. A personnel change will be
implemented to reflect this, including Philippe Rogge stepping
down as Vodafone Germany CEO.

Spanish Govt Buys 3% Stake in Telefonica, Eyes 10%

The Spanish government says it will look to increase its stake in the
country’s largest mobile operator, seeking to counter the influence
of Saudi Arabia’s stc. In September last year, Saudi Arabian telco
group stc bought a 9.9% stake in Spain’s Telefonica for $2.25
Billion, a move that made them the company’s largest shareholder.
At the time, stc said the move was simply the latest step in
their newly diversified investment strategy, calling Telefonica a
“compelling investment opportunity” and emphasizing that they
had no intention of taking a controlling stake in the business.
Nonetheless, the stake acquisition was controversial, with the
Spanish government quickly outlining concerns surrounding loss
of control of what they view as critical infrastructure. Telefonica is
not only the country’s largest telecoms operator, but also provides
crucial connectivity services to government organizations and,
perhaps more importantly, the military. By December last year,
the Spanish government had announced a plan to acquire a 10%
stake Telefonica to offset stc’s influence within Telefonica, a
move they said was ““in line with other large European countries,
such as France and Germany, which have and are increasing strategic capabilities of a company that is strategic for (Spain’s)
their shareholdings in big and strategic telecommunications national interests,” said SEPI in a statement. Now, the government
operators”. The government’s plan suggested the stake would be has confirmed its intentions to increase this stake to 10%, saying
built incrementally, with the first 3% acquisition via state holding it will do so gradually through various instruments over the next
company SEPI. “The entry of the SEPI, a shareholder with a long- two months. “It will be done as quickly as possible, in the shortest
term commitment, will provide Telefonica with greater shareholder possible time, provided that it doesn’t affect (Telefonica’s) share
stability to achieve its objectives, contributing to safeguarding the price,” said government spokesperson Pilar Alegria.

109 JANUARY-MARCH 2024