Vodafone Group has completed the sale of its Italian operations to Swisscom for €8 billion, marking the second of three major deals reshaping the company’s European presence.
This deal, which closed slightly ahead of the original timeline, concludes at the end of December 2024 and comes shortly after Vodafone cleared a regulatory hurdle in its bid to merge its UK operations with 3 UK. The company had previously sold its Spanish unit to Zegona Communications for €5 billion in May 2024.
The cash from the Italian sale will help Vodafone reduce its debt and fund share buybacks as part of its broader strategy to focus on high-growth markets. For Swisscom, the acquisition boosts its presence in Italy, where it already owns the fixed-line provider Fastweb. The two companies plan to integrate their operations under the new entity of Fastweb + Vodafone, with both Fastweb and Vodafone brands remaining active in the market for the time being. Fastweb CEO Walter Renna called the combined entity “a stronger, more innovative organisation” that will lead Italy into a sustainable digital future, promising synergies of up to €600 million annually.
Meanwhile, Swisscom has agreed to pay Vodafone €350 million in the first year for services provided in Italy, underlining the significance of this deal for both parties.
However, a key point of comparison for this sale raises concerns in Vodafone’s other markets, particularly Ghana. In 2023, Vodafone sold its operations in the West African country to Telecel, but unlike the Italian and Spanish deals, the sale price has not been disclosed to the public. Despite the scale of the transaction, neither the buyer nor the Ghanaian authorities have released the details, leading to questions about transparency in the process.
The absence of a publicized sale price for Vodafone’s Ghana operations contrasts sharply with the clear disclosure in the Italian and Spanish deals. Moreover, the lack of demand for transparency from Ghanaian authorities has sparked criticism, with some calling for greater accountability in the sale of such key national assets.
As Vodafone continues to streamline its European operations, the unanswered questions surrounding its Ghana sale raise important issues about corporate governance and the oversight of foreign business transactions in the country.
