Remedies imposed by the EC when Wind Tre was created mean no deal is possible before 2026; dropping from four to three operators could be opposed by regulators

According to Reuters, the Hong Kong-based conglomerate CK Hutchison and Iliad Group—owned by French billionaire Xavier Niel—are engaged in preliminary discussions about combining their respective Italian telecom operations. Three unnamed sources provided the information to the news agency.

Wind Tre, CK Hutchison's Italian subsidiary, emerged from a 2016 merger between Three Italy and Wind. The conglomerate became the sole shareholder in September 2018. Currently, Wind Tre ranks as Italy's third-largest mobile operator, commanding 24% market share, while Iliad holds fourth place with 11%, according to Italian regulator AgCom.

When the European Commission cleared the Wind Tre merger, it imposed conditions that have significant implications for future consolidation. The Commission authorized Iliad's entry into the Italian market in 2018 as an antitrust remedy, and restrictions established at that time would block Wind Tre from acquiring Iliad before 2026 at the earliest. A joint venture structure has been mentioned as a potential alternative approach.

A four-to-three reduction in Italian operators would mirror the recent Three UK and Vodafone combination. However, the European Union has historically resisted such consolidation patterns.

Reuters estimates Niel's Free-branded Italian operations at over €3 billion. In December 2023, Iliad valued its Italian business at €4.45 billion when it submitted an unsuccessful offer for Vodafone Italia. Earlier in the year, Iliad also pursued negotiations with Telecom Italia Mobile.

In March, Reuters reported that CK Hutchison was examining the possibility of divesting its global telecoms portfolio, valued between £10 billion and £15 billion (€11.37 billion and €17 billion). These telecom operations represent the company's most valuable holdings, generating a quarter of group operating profit in 2024, with Italy and Britain leading European performance and Ireland and Sweden showing the fastest expansion.

Source: Mobile Europe