Italy and Asterion to Bid for Telecom Italia's Sparkle Unit

27 Sep, 2024

Italy and Asterion to Bid for Telecom Italia's Sparkle Unit

Italy is gearing up to make a bid for Telecom Italia’s submarine cables unit, Sparkle, in partnership with Spanish investment firm Asterion Industrial Partners. According to a report by La Repubblica, the consortium's offer is expected to exceed a previous bid of €750 million ($837 million) that was rejected by Telecom Italia earlier this year.

The decision to pursue Sparkle is significant due to the company's operation of over 600,000 kilometers (373,000 miles) of submarine cables that connect various countries, including Israel and the United States. This extensive network is crucial for facilitating global data flow, including potentially sensitive information, making it strategically important for the Italian government.

The move comes on the heels of Telecom Italia's recent sale of its network grid to KKR & Co. Inc. for up to €22 billion. CEO Pietro Labriola is focused on actively participating in the ongoing consolidation in the fragmented Italian telecommunications market. The landscape is evolving, with significant transactions like Swisscom AG's acquisition of Vodafone Italia for €8 billion, indicating a shift in market dynamics that may pave the way for further strategic moves. This consortium bid marks a critical step in Italy's efforts to enhance its telecommunications infrastructure.