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Hutchison, VimpelCom in exclusive talks with French operator, sources say.
Iliad could become Italy’s newest mobile network operator, should reports about its interest in acquiring assets from a merged 3 Italia/Wind prove accurate.
CK Hutchison and VimpelCom are holding exclusive talks with the French telco with a view to selling infrastructure and spectrum to enable it to start operating in Italy, Reuters reported late on Monday, citing two unnamed sources familiar with the situation.
Earlier this year Bloomberg claimed that Hutchison and VimpelCom were holding talks with a number of parties regarding the divestment of assets. In addition to Iliad, the newswire named satellite TV operator Sky, Swisscom’s Fastweb unit, and Italian ISP Tiscali.
This latest report suggests that the aforementioned companies are now out of the running, with Hutchison and VimpelCom focusing solely on a deal with Iliad.
Italy’s telecoms players are doubtless watching with interest. Iliad’s Free Mobile proved to be a highly disruptive force in the French market when it launched services at the start of 2012. It has since built up a mobile market share of 17%, in addition to its growing presence in the fibre broadband market.
The final decision on Iliad’s entrance into Italy will rest with the European Commission, according to Reuters.
Hutchison and VimpelCom agreed to merge their Italian operations, 3 Italia and Wind respectively, in August last year via a €21.8 billion deal and are now working towards securing regulatory approval for the transaction.
The European Commission is currently examining the deal. Last month it extended its deadline to publish a ruling after both companies submitted a series of proposed pro-competition remedies. It has until 8 September to make a decision.
The Commission will judge whether or not Iliad would be able to compete effectively with Italy’s existing players, Reuters’ sources said.
Hutchison could learn of the Commission’s decision by the end of this week, one said.
