MILAN – Swisscom took a step forward in its plan to combine its Italian arm Fastweb with Vodafone’s (NASDAQ: VOD) local assets as the country’s antitrust body found its proposed competition remedies acceptable, three sources with knowledge of the matter said.
While there is no final decision yet from the authority at this stage, the antitrust findings on the deal and its assessment that Swisscom’s proposals are suitable signal the deal is on track to be cleared, the sources said.
The Italian antitrust authority (AGCM), whose approval is required to complete the deal, is carrying out an in-depth review of Swisscom’s 8 billion euro ($8.3 billion) buyout of Vodafone Italia, which would be merged with Fastweb.
Swisscom submitted to the authority a set of proposals for behavioral commitments to allay concerns that the merger could restrict competition in Italy’s fixed-line wholesale service market, as well as in retail services for public administration and corporate customers, Reuters reported this month.
The proposed commitments included an offer to give competitors access to Fastweb’s fiber infrastructure and share with rivals all the needed information to ensure a level playing field in any public tenders for phone and connectivity services.
This week the Italian watchdog told parties involved in the transaction and their rivals that the proposed remedies should be suitable to address competition concerns stemming from the deal, the three sources said.
The AGCM said the commitments should be in place for three years, the sources added.
Competitors are now required to provide their feedback on the antitrust’s findings by Nov. 24, according to the people.
The authority is expected to complete its in-depth review of the Vodafone-Swisscom deal by December 10. Swisscom plans to finalize the deal in the first quarter of next year.
AGCM, Swisscom, and Vodafone declined to comment.
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