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The Hong Kong conglomerate CK Hutchison and the French telecommunications group Iliad, led by billionaire Xavier Niel, are reportedly in preliminary talks to merge their operations in the Italian telecom market.
According to multiple sources cited by Reuters, the discussions could lead to a joint venture combining CK Hutchison’s subsidiary Wind Tre and Iliad’s Italian operations, which currently operate under the Free brand.
Wind Tre, formed from the 2016 merger of Three Italy and Wind and wholly owned by CK Hutchison since 2018, is Italy’s third-largest mobile operator with a market share of approximately 24%, while Iliad holds around 11%, according to Italian regulatory authority AgCom.
Any merger would reduce the number of mobile operators in Italy from four to three, thus drawing significant regulatory scrutiny from national and European regulators. The European Commission has traditionally been resistant to this kind of consolidation, but in recent years its attitude has thawed, allowing significant mergers in numerous markets, like MasMovil and Orange in Spain and Vodafone and Three in the UK.
However, the European Commission’s prior approval of the Wind Tre merger came with conditions that allowed Iliad entry into the market as an antitrust remedy and explicitly prevented Wind Tre from acquiring Iliad before 2026. This timeline suggests a full merger before then may be unlikely, but a joint venture or other cooperation frameworks could be considered.
Iliad’s Italian operations have been valued at over €3 billion, with the group stating a valuation of €4.45 billion when it attempted a bid for Vodafone Italia in late 2023, which was rejected.
Earlier this year, Iliad also explored a potential tie up with Telecom Italia (TIM), indicating its strategic ambition to expand its footprint in Italy. Meanwhile, CK Hutchison has been reportedly considering divesting some of its telecom assets globally, valued between £10 billion and £15 billion (€11.37 billion to €17 billion), with Italy and the UK being the largest European contributors to its telecom revenues. Its telecom division accounted for roughly 25% of CK Hutchison’s group operating profit in 2024.
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