Supporting the development of a major European telecom player
Societe Generale is supporting Swisscom in the acquisition of Vodafone Italia, and its cross-border development in the telecommunications industry.
In March 2024, Swisscom, the leading telecommunications company in Switzerland, listed on the Swiss Stock Exchange, entered into binding agreements with Vodafone Group Plc to acquire 100% of Vodafone Italia for EUR 8 billion on a debt and cash free basis with the aim of merging it with Fastweb, Swisscom's subsidiary in Italy.
A multi-benefit merger
Vodafone Italia and Fastweb would 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.
The increased scale, more efficient cost structure and significant annual run-rate synergies of EUR 600 million would enable the combined entity to unlock significant value for all stakeholders, sustain investments in the Italian telecommunications market and offer innovative, competitively priced converged services, improving performance and user experience for customers across all market segments.
This acquisition would significantly strengthen Swisscom's presence in Italy, where it has been operating successfully through Fastweb since 2007. Vodafone Italia is a premium mobile operator with a large customer base. By combining Fastweb's strengths in fixed connectivity with Vodafone Italia's leading position in mobile services, the new entity would bring significant benefits to Italian consumers, businesses, and the country.
The transaction remains subject to regulatory and other customary approvals. Closing is expected in Q1 2025.
Societe Generale acted as bookrunner and mandated lead arranger for the EUR 8.1 billion equivalent multi-currency financing of this strategic acquisition. Shortly thereafter, Societe Generale successfully contributed as active bookrunner to the issuance of a EUR 4.0 billion quintuple-tranche Eurobond.
Speed of execution, coordinated teamwork across business lines and deep sector expertise enabled Societe Generale to respond quickly to the client's needs, which made all the difference. This strategic deal is a new step in the relationship that the Group and Swisscom have built up over the years.