Madrid, May 14, 2024.- The Council of Ministers approved the acquisition of 100% of the Vodafone Spain Group by Zegona Bidco. The operation, which involves the purchase of the third telecommunications operator in Spain by market share (16% of fixed broadband customers and 22% of mobile phone customers, according to the latest data published by CNMC and referring to February 2024), is valued at 5 billion euros that will be financed with a combination between debt and capital.
The buyer group has presented in the authorization process various commitments through a strategic and financial plan. Specifically, to guarantee the continuity of the service and contemplates future investments, mainly in mobile coverage with 5G technology, as well as to adopt measures that guarantee financial solvency.
These investments, especially those aimed at the development of 5G, will allow Spain to consolidate its position at the European forefront in connectivity, benefiting citizens and companies, by promoting the technological development of the country. In addition, Zegona is also committed to maintaining the relevant contracts with the General Administration of the State and to maintaining stability in the strategic assets of the company.
“The telecommunications sector is in a moment of profound reorganization, and it is the duty of the public authorities to ensure that this strategic service is not only insured, but that it is reinforced when a far-reaching business operation takes place,” said the Minister for Digital Transformation and Public Service, José Luis Escriva, at the press conference after the Council of Ministers. “With the commitments made by the buyer, we are convinced that Spain’s leadership in connectivity can be consolidated.”
Spain has 100% ultra-fast broadband connectivity through the combination of fiber and satellite technologies, and an increasing deployment of 5G coverage articulated through a Plan of Promotion More than EUR 1.4 billion has been dedicated to it.
The government has authorized the operation, which was reported favourably last week by the Foreign Investment Board of the Ministry of Economy, Trade and Business, last week, after scrutiny of the operation required by the regulations. In addition, the Ministry for Digital Transformation and Public Service, through the Secretary of State for Telecommunications and Digital Infrastructures, has authorized the purchasing entity to take control over the radio spectrum concessions held by Vodafone Spain.
Spain has strict control over the control of foreign investments that balances public security guarantees with a stable and predictable framework that continues to attract foreign investment, which is a source of growth and employment.