Twist in the telecommunications sector in Italy. According to Bloomberg, the French group Iliad has submitted an offer to take over 100% of Vodafone Italy. According to analysts, the transaction is valued at between 11 and 14 billion euros.
At the moment, the two companies have not released any comments on the matter but according to what has been leaked, the offer made by the owner of Iliad, the billionaire Xavier Nielwould already be on the table and under evaluation by the Vodafone board of directors, which has chosen the investment bank Lazard as its advisor.
The French group holds a 7.7% share of the Italian market while Vodafone holds another 28.5%. If successful, the agreement would create a powerful tlc group, with a mobile market penetration of around 36% and total revenues close to 6 billion euros given that in the 2020-21 period Vodafone generated 5 , 5 billion euros in sales and a gross operating margin of 800 million euros. In the first nine months of 2021, Iliad recorded a turnover of 590 million euros in Italy. The new company could count on over 26 million Sim cards.
After years of low margins the main European telecommunications companies they are trying to consolidate to expand their market shares and to make synergies and economies of scale possible also in view of the important investments for 5G networks.
The integration of the two companies in Italy had been talked about for several days, at first it seemed that Vodafone was buying Iliad’s assets in Italy while now the scenario has been reversed.
On the price list of London Vodafone shares closed the session up by a modest 0.20%.
Who is Iliad
Iliad entered the Italian mobile services market with a straight leg in 2018, triggering a no holds barred price war and to date has a market share of over 7% with 8.5 million users.
Founded in 1999, Iliard is the sixth telephone operator in Europe and operates mainly in France, Poland and Italy.
In the first nine months of 2021, the French group achieved a turnover of 5.63 billion euros (+ 34%) thanks to 40.8 million users in Europeof which 33.7 million mobile users and 7.1 million users for fixed network services.