Vodafone Completes €8 Billion Sale to Swisscom

Vodafone Group has finalized the €8 billion (£6.6 billion) sale of its Italian operations to Swisscom, marking a significant move in its strategy to streamline its European portfolio. The deal, which values Vodafone Italy at a multiple of 7.6 times adjusted earnings, will enable Vodafone to reduce its net debt and return up to €2 billion to shareholders after the current buyback program. Vodafone will continue to provide certain services to the Italian operations for five years, receiving an annual charge of approximately €350 million. Swisscom plans to merge Vodafone Italia with its Fastweb business, aiming to create a stronger competitor in the Italian telecommunications market. The integration of the two entities is expected to unlock annual synergies of around €600 million. This transaction comes on the heels of Vodafone's recent merger approval with Three UK, paving the way for the establishment of Britain's largest mobile network.