Vodafone's Strategic Exit from Italy

Vodafone Group Plc has recently announced the signing of a binding agreement to sell 100% of its operations in Italy to Swisscom AG. This strategic move marks a significant shift in Vodafone's European footprint, as it exits the Italian market entirely.

The transaction, valued at €8 billion on a debt and cash-free basis, is subject to customary regulatory approvals. Both Vodafone and Vodafone Europe B.V. provided customary warranties, including those related to capacity and title, and received reciprocal warranties from Swisscom Italia S.r.l. and Swisscom AG.

In the six months ending September 30, 2024, Vodafone Italy reported a revenue of €2.249 billion, a gross profit of €1.37 billion, and an operating profit of €928 million. These figures highlight the substantial value of Vodafone's Italian operations, which Swisscom is now set to acquire.