Vodafone Italia, government OKs Swisscom takeover

Green light from the Prime Minister's Office for the sale of Vodafone Italia to Swisscom, Fastweb's parent company. And it is a green light without prescriptions.

The first major hurdle, that of 'Golden Power', is being circumvented without a hitch. Giving the news is Swisscom, in a note. "Following the announcement of the acquisition of Vodafone Italia released on 15 March 2024, Swisscom informs," it reads, "that the Italian Prime Minister's Office has approved the acquisition without reservation, in the exercise of Golden Power," the special powers of the government in the case of strategic assets.

The communication, received by the Swiss company on 17 May, states that 'the notified operation does not determine a threat of serious prejudice to national interests and that, therefore, the prerequisites for the exercise of the special powers under Article 2 of Decree-Law No. 21 of 2012 do not exist'.

This is in fact the purpose of the Golden Power legislation, which reserves special powers of intervention to the government in certain transactions, investments or company resolutions that could compromise or prejudice Italy's essential public interests, allowing it to enforce its veto or impose special conditions and prescriptions. A 'cut-off' that can be activated in those transactions involving all non-EU companies (not just Chinese) and, in the case of takeovers of Italian companies, even European companies.

"The acquisition of Vodafone Italia," Swisscom's note concluded, "is proceeding on schedule. Completion of the transaction is still subject to further regulatory and other customary approvals and is expected to occur in the first quarter of 2025."