Italian mobile operators Wind and 3 could be close to a merger agreement, according to fresh rumours late on Tuesday.
Parent companies Hutchison Whampoa and Vimpelcom are now in advanced talks, the Financial Times quoted unnamed sources as saying.
The two sources said that the companies are close to reaching an agreement that could see Hutchison’s 3 as the dominant partner.
There has been talk of a tie-up between the telcos for some time.
Earlier negotiations reportedly collapsed late last year after the pair failed to agree on the ownership structure of the new venture, allegedly because while Vimpelcom was looking to create a 50:50 partnership, Hutchison was keen to have control. However, last month Bloomberg reported that the companies had made progress and were working towards a deal that could see 3 Italia take control of Wind’s mobile operations.
One of the FT‘s sources suggested that the new deal could see Hutch take a slightly larger share in a joint venture than its partner, at around 51%. However, the person said that a final decision is likely still weeks away.
A tie-up between Wind and 3 would reduce the number of mobile network operators in Italy to three from four and therefore would attract the scrutiny of national regulators and the European Union.
However, Wind and 3 are the third and fourth largest mobile operators in Italy by subscribers, together controlling a third of the market. Therefore, their merger would leave three strong network operators, something that would doubtless appease competition bodies to a certain extent.
Indeed, in February Telecom Italia CEO Marco Patuano indicated that he is hopeful consolidation will come to the Italian mobile market, which is still characterised by strong price competition, particularly from 3 and Wind.
Based on the latest figures from Italian regulator AGCOM, Wind and 3 together would have held a 33.3% share of the mobile market as of the end of September.
At the same date market leader Telecom Italia had a 32.1% share, while Vodafone claimed 27.5%.
