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But report claims government’s budget plan could jeopardise the merger altogether.
Italy’s government has given the go-ahead for 3 Italia and Wind’s €21.8 billion merger, announced 3 Italia parent CK Hutchison on Tuesday.
The approval means the deal is on track to complete by the end of the year, creating a 50:50 joint venture with around 31 million mobile customers and 2.8 million fixed-line customers.
"The combined entity will deliver major investment into Italy’s digital infrastructure, bring benefits to consumers and businesses across Italy and unlock significant value through synergies," said CK Hutchison.
However, a report by Il Messaggero on Tuesday suggests that the Italian government could be about to throw a rather large spanner in the works.
According to the report, under Italy’s Draft Budgetary Plan for 2017, the government hopes to raise as much as €1.8 billion through the renewal of 900-MHz and 1800-MHz spectrum licences held by incumbent TIM, Vodafone, Wind, and 3 Italia, which are due to expire at the end of June 2018.
However, the plan could see France’s Iliad having to pay for €300 million of those licence fees, the report said. The telco agreed to acquire 5 MHz of 900-MHz spectrum and 10 MHz of 1800-MHz spectrum divested by 3 Italia and Wind as part of a package of concessions that secured the European Commission’s approval for their merger.
According to Il Messaggero, Iliad is understandably unhappy with the proposal, and may even scrap its plan to enter Italy altogether.
The Commission’s blessing of the 3 Italia/Wind deal was conditional on the telcos facilitating the entry of a new player. If Iliad pulls out, then Brussels consider rescinding its approval.
