Finance
Exclusive-CK Hutchison, Iliad consider tie-up up of their Italian operations, sources say
Published by Global Banking and Finance Review
Posted on October 30, 2025
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By Amy-Jo Crowley, Clare Jim and Elvira Pollina
(Reuters) -Hong Kong conglomerate CK Hutchison has been studying a potential tie-up of its Italian telecom unit Wind Tre and the Italian operations of French telecoms group Iliad, three sources familiar with the matter told Reuters.
In the latest attempt to consolidate Italy's telecoms market, the two companies have held early-stage conversations with each other over a possible deal, the people said.
Iliad's Italian unit could be valued at more than 3 billion euros ($3.50 billion) on a standalone basis and a deal could be structured as a joint venture, one of the people said.
Wind Tre is the third-largest mobile network operator in Italy with a 24% market share, while Iliad is fourth with nearly 11%, according to the latest data provided by Italy's telecoms market regulator AgCom.
Shares in incumbent Telecom Italia jumped 5.8% after the Reuters report raised expectations for consolidation in the sector.
Iliad declined to comment, while CK Hutchison said it does not comment on market speculation. A Wind Tre spokesperson did not immediately respond to a request for comment.
The sources spoke on condition of anonymity as the talks are private.
DEAL WOULD REDUCE NUMBER OF PLAYERS
A deal would reduce the number of mobile operators in one of Europe's most competitive telecoms markets to three from four, and as a result could face both regulatory and political scrutiny, two of the people said.
Another option could see Wind Tre acquire Iliad’s Italian operations and pay its French billionaire owner Xavier Niel with shares in the future listed entity of CK Hutchison's European telecoms assets, said one of the two sources.
Reuters reported in March that CK Hutchison had started preparations to spin off its global telecommunications assets, a business that could be valued between 10 billion and 15 billion pounds.
COMPETITION RULES WON'T ALLOW DEALS BEFORE 2026
The entrance of low-cost mobile operator Iliad to the Italian market in 2018 was part of EU antitrust remedies to clear the merger of CK Hutchison’s 3 Italia with Wind Tre in 2016.
The European Commission's conditions effectively barred Wind Tre from any deal to takeover Iliad until at least 2026.
Iliad separately failed to clinch a deal to combine its Italian operations with those of state-backed Telecom Italia (TIM) earlier this year after it had sought to buy Vodafone's operations in the country in 2024.
CK Hutchison's telecoms business is its most profitable, accounting for a quarter of group operating profit in 2024. Italy and Britain are the top contributors to the European telecoms business, with Ireland and Sweden the fastest growing markets.
Iliad said it valued its Italian operations at 4.45 billion euros including debt and post-merger efficiencies in December 2023, when it submitted its bid for Vodafone Italia.
($1 = 0.8575 euros)
(Reporting by Amy-Jo Crowley In London, Clare Jim in Hong Kong, Elvira Pollina in Milan. Additional reporting by Gianluca Lo Nostro; Editing by Anousha Sakoui, Kirsten Donovan)