Italy’s State-Run Postal Service Buys Stake in Telecom Italia to Create "National Champion"
In a move aimed at recreating a "national champion" in the telecommunications industry, Italy’s state-run postal service, Poste Italiane SpA, has acquired a 9.8% stake in Telecom Italia SpA. This comes as the Italian government, led by Prime Minister Giorgia Meloni, seek to ward off foreign control of the country’s phone industry.
The stake swap deal saw Poste Italiane acquire the 9.8% stake in Telecom Italia from state lender Cassa Depositi e Prestiti SpA (CDP), in exchange for Poste’s 3.8% stake in payments specialist Nexi SpA. This transaction is seen as a strategic investment for Poste Italiane, aimed at creating synergies between the two companies and supporting the consolidation of the Italian telecommunications market.
The move is part of the Italian government’s efforts to maintain a domestic presence in the telecommunications industry, particularly after Telecom Italia emerged as a potential target for international investors like CVC Capital Partners Plc and Iliad SA. The government has been keen to find a domestic alternative, and Poste Italiane is seen as a natural fit for Telecom Italia, given its existing operations in the country.
As part of the deal, Poste will pay for the Telecom Italia stake through proceeds from the sale of its holding in Nexi. In addition, Poste will provide Cassa Depositi with a cash adjustment of approximately €180 million.
The Italian government, known for its efforts to protect "national champions" since 2022, has engaged in similar deals to maintain control over strategic assets. In this case, the government sees Poste Italiane as a key player in the telecoms sector, given its existing operations in the country and its potential for growth.
The acquisition marks a significant milestone for both companies, as they aim to create a strong, homegrown telecommunications player in Italy. With this deal, Poste Italiane has not only acquired a significant stake in Telecom Italia but has also demonstrated its commitment to the country’s telecommunications sector.
Experts suggest that this move may also affect the country’s mobile market, where international players are keen to expand their presence. However, the Italian government’s efforts to maintain a domestic presence in the sector may indicate a more focused approach to the telecoms market, with a greater emphasis on homegrown companies.
Sources:
- Bloomberg News
- Poste Italiane SpA
- Cassa Depositi e Prestiti SpA (CDP)
- Telecom Italia SpA
- Iliad SA
- CVC Capital Partners Plc
Related articles and country-specific information can be found on bloomberg.com.
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