Italy’s Poste Buys Telecom Italia Stake With Meloni Blessing

(Bloomberg) — Italy’s state-run postal service bought a stake in Telecom Italia SpA amid a government push to recreate a “national champion” in the telecommunications industry.

Prime Minister Giorgia Meloni backed a stake swap that allowed Poste Italiane SpA to take over a 9.8% holding in Telecom Italia from state lender Cassa Depositi e Prestiti SpA, according to a statement on Saturday. The state lender, known as CDP, in turn received Poste’s 3.8% stake in payments specialist Nexi SpA.

“The transaction represents a strategic investment for Poste Italiane aimed at creating synergies between the companies and supporting, together with all relevant stakeholders, the consolidation of the Italian telecommunications market,” Poste said.

The move hands Poste, which has expanded into financial and logistics services, a role as a bulwark against further foreign control of Italy’s phone industry. Telecom Italia recently emerged as a possible target as it slashed debt following the sale of its landline network last year. 

Bloomberg News reported on Friday that Italy’s government was pushing for a domestic alternative to international investors that have shown interest in the company including CVC Capital Partners Plc and Iliad SA.

Since coming to power in 2022, Meloni’s right-wing government has kept a close eye on companies it considers “national champions.” That’s translated into moves to ward off foreign purchases of Italian assets, whether by rounding up local investors or resorting to the “golden power” provision which allows the state to block takeovers of strategic assets in some cases.

The Rome-based administration sees Poste as a natural fit for Telecom Italia. The postal operator already runs the country’s largest mobile virtual operator.

Poste is set to pay for the Telecom Italia stake through proceeds from the sale of its holding in Nexi, the company said. In addition, Poste will grant Cassa Depositi a cash adjustment of around €180 million, according to people familiar with the matter. A Poste spokesperson declined to comment on the cash adjustment.

(Updates to add detail on deal funding in the last paragraph.)

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