Business

Talks Between Vodafone and Iliad to Combine Their Italian Business

Vodafone and Elaide are in talks to merge their business units in Italy, Europe's third largest economy

Telecom companies Vodafone and Elaide are in talks to strike a deal in Italy to combine their businesses in a bet to end competition in the eurozone’s third-largest economy.

As these two companies are considered rivals for each other in Italy, so this deal will make them both as one and would end the ؤompetition between them. Moreover, this merge, will result in a better technologies in terms of networks and software.

Elaide is working with investment bank Lazard on strategic plans in Italy, and warned that the deal is not yet confirmed, but that if successful, it would result in a call center controlling 36% of the mobile network market and total revenue of 6 billion euros which is equal to $6.80 billion.

Elaide, led by billionaire Xavier Niel, has been reconsidering options for expansion in Italy over the past few months as it seeks to capitalize on the wave of deal-making within the Italian telecoms sector to speed up integrations and take advantage of the price war that has squeezed its profit margins.

The news comes at a time when Telecom Italia is still evaluating the US fund KKR’s €10.8 billion ($12.25 billion) bid to acquire Italy’s largest telecom group. Read more [US Investment Fund KKR Seeks to Acquire Telecom Italia].

Vodafone commands a share of around 28.5% of the Italian telecom market with annual revenue of €5 billion according to Italian regulators data, while Elaide is much smaller in Italy with annual revenue of €674 million in 2020 and a market share of 7.7% of the mobile network market.

Related Articles

Back to top button