Vodafone, the British telecom giant, announced on Thursday the completion of its €8 billion ($8.3 billion) sale of Vodafone Italy to Swisscom. The transaction represents a crucial milestone in the company’s efforts to streamline its European operations.
"The sale of Vodafone Italy is the final chapter in reshaping Vodafone's presence across Europe," a company spokesperson stated.
This follows Vodafone’s agreement to sell its Spanish operations and the merger of its UK division with Three, owned by CK Hutchison. Vodafone will continue to provide select services to its former Italian business for up to five years.
The proceeds from the Swisscom deal will be allocated toward reducing Vodafone’s net debt, with up to €2 billion earmarked for shareholder returns.
The sale comes after Vodafone rejected an earlier proposal to merge its Italian unit with French billionaire Xavier Niel’s Iliad Group, opting instead to engage in advanced discussions with Swisscom starting in March.
Under the leadership of CEO Margherita Della Valle, Vodafone has been undergoing a significant transformation aimed at reducing costs. In 2023, the company cut over 10% of its global workforce.
Additionally, Vodafone’s merger with Three in the UK was recently approved by regulators. The deal, which will create the country’s largest mobile operator, includes plans for significant investment in 5G network expansion.
Following the announcement, Vodafone’s share price rose on the FTSE 100 index, reflecting renewed investor confidence after the company reported a return to profitability in the first half of 2024.
Updated on 3rd January, 2025 by MyFortune11 Team.