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How much is Switzerland in Swisscom? A little less soon: The Swiss telecommunications company has signed the acquisition agreement for Vodafone Italy. The cost of the acquisition is 8 billion euros.
Vodafone Italy will be merged with Milan-based Swisscom subsidiary Fastweb, the “blue giant”, according to a statement published on Friday. This comes after TIM, Italy’s second largest telecoms provider, with total turnover of €7.3 billion and combined operating earnings before depreciation and amortization (EBITDA) after leases of €2.4 billion.
The deal was already announced at the end of February and caused criticism. It was said that the state-owned company should not dare to embark on expensive overseas adventures. The takeover adds momentum to calls to privatize Swisscom.
Higher dividends for Swisscom shareholders
Vodafone Italy and Fastweb complement each other well: Fastweb owns the broadband network, while Vodafone Italy contributes to the mobile network. This will allow the two companies to address their respective weaknesses in the Italian telecom market and save costs. Until now, Fastweb had to rent capacity from other mobile phone providers for its mobile customers. It was stated that a synergy of 600 million euros per year is expected with the merger of Fastweb and Vodafone Italy.
Swisscom shareholders, and therefore also the federal treasury, may be happy: Swisscom wants to increase its dividend from 22 francs to 26 francs from 2026. It was stated that the goal is to further increase the dividend in the coming years. (SDA/sfa)
Source :Blick
I’m Tim David and I work as an author for 24 Instant News, covering the Market section. With a Bachelor’s Degree in Journalism, my mission is to provide accurate, timely and insightful news coverage that helps our readers stay informed about the latest trends in the market. My writing style is focused on making complex economic topics easy to understand for everyone.
