CK Hutchison and Iliad Hold Talks on Italian Telecom Merger

October 30, 2025 – Hong Kong-based conglomerate CK Hutchison Holdings (0001.HK) is exploring a potential tie-up of its Italian telecom unit Wind Tre with the Italian operations of French telecom group Iliad, according to sources familiar with the matter.

The discussions are at an early stage but signal another attempt to consolidate Italy’s highly competitive telecom market, which currently has four major mobile operators.

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Deal Could Reshape Italy’s Mobile Market

Wind Tre is currently Italy’s third-largest mobile operator, holding a 24% market share, while Iliad ranks fourth with nearly 11%, based on the latest figures from Italy’s telecom regulator AgCom.

A merger or joint venture would reduce the number of players in Italy from four to three, potentially reshaping competition in one of Europe’s most contested telecom markets.

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Possible Structure and Valuation of the Deal

Sources indicate that Iliad’s Italian unit could be valued at over €3 billion ($3.5 billion) on a standalone basis. Several deal structures are under consideration:

• Joint Venture: Wind Tre and Iliad could combine operations under a single entity, sharing ownership and management.
• Acquisition with Share Swap: Wind Tre could acquire Iliad’s Italian operations, compensating Iliad’s French billionaire owner Xavier Niel with shares in a future CK Hutchison-listed European telecom entity.

This strategic move aligns with CK Hutchison’s ongoing efforts to restructure its global telecom assets, a business division previously reported to be valued between £10 billion and £15 billion.

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Regulatory and Political Considerations

Industry observers expect that any deal will face intense regulatory scrutiny, given its impact on competition in Italy. Reducing the number of mobile operators in such a competitive market could trigger antitrust reviews and political debates.

While Iliad declined to comment and CK Hutchison refrained from confirming market speculation, sources emphasized that the talks are private and ongoing.

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Strategic Implications for CK Hutchison and Iliad

For CK Hutchison, the potential deal would strengthen its position in Europe’s telecom sector, expanding scale and operational efficiency. For Iliad, a partnership with Wind Tre could accelerate growth in Italy and enhance its competitive positioning.

This proposed consolidation highlights the ongoing trend of mergers and acquisitions in European telecommunications, as companies seek to optimize networks, reduce costs, and compete with larger global players.

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Conclusion: A Significant Move in European Telecom

If finalized, the CK Hutchison–Iliad tie-up could reshape Italy’s telecom landscape, creating a formidable competitor while reducing market fragmentation. Investors and regulators alike will be watching closely, as the deal could have long-term implications for mobile pricing, infrastructure investment, and industry dynamics in Italy and Europe.