Italy's state-majority-owned postal service Poste Italiane announced a €10.8 billion cash-and-share offer to fully acquire Telecom Italia, where it already holds the largest shareholder position.
Poste Italiane, Italy's state-majority-owned national postal service, announced Sunday it will launch a €10.8 billion cash-and-share offer to fully acquire Telecom Italia, where it already holds the largest shareholder position. The move represents a significant consolidation in Italy's telecommunications sector and marks Poste Italiane's ambition to expand beyond its traditional postal and financial services into the country's critical telecom infrastructure.
According to Reuters, the cash-and-share offer values Telecom Italia at a premium to its current market price, though specific terms were not immediately disclosed. Poste Italiane currently owns approximately 23% of Telecom Italia's shares, making it the largest single shareholder ahead of Vivendi, which holds around 24%.
The acquisition bid comes amid broader consolidation trends in European telecommunications, where companies are seeking scale to compete with global tech giants and invest in next-generation networks. For Poste Italiane, the deal represents a strategic pivot toward becoming a more diversified digital services provider, leveraging Telecom Italia's extensive fiber and mobile network infrastructure.
Telecom Italia, Italy's former state monopoly, has struggled with high debt levels and competitive pressures in recent years. The company has been at the center of multiple takeover attempts and restructuring discussions, with activist investors and private equity firms previously expressing interest in its assets.
Poste Italiane's move is likely to face scrutiny from Italian regulators and the European Commission, given the strategic importance of telecommunications infrastructure and Poste's state backing. The deal would create a vertically integrated entity combining postal services, financial products, and telecommunications under one roof.
The announcement sent Telecom Italia's shares up in Monday trading, reflecting market optimism about the potential for a premium offer. Industry analysts suggest the deal could face resistance from Vivendi and other shareholders who may seek alternative proposals or push for a higher valuation.
If completed, the acquisition would mark one of the largest corporate transactions in Italy in recent years and could accelerate the country's digital transformation efforts by providing a single entity with the scale to invest heavily in 5G and fiber-optic network expansion.
[Featured image: Poste Italiane headquarters in Rome, Italy]
Source: Reuters
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