TIM and Iliad merger talks collapse, Italian telecom market remains fragmented with four operators.

TIM and Iliad merger talks have ended, with CEO Thomas Reynaud stating that no further discussions will take place. The Italian telecom market will remain divided among four operators - TIM, Vodafone-Fastweb, Iliad, and WindTre - putting pressure on prices. Iliad Italia reported a 9.2% revenue increase in the first half of the year and a reduced loss of EUR53 million compared to EUR117 million a year earlier. TIM shares plummeted by 8.81% to EUR0.41 following the news.

The merger talks between Telecom Italia (TIM) and Iliad have officially ended, with Thomas Reynaud, CEO of Iliad, confirming that no further discussions will take place. This development leaves the Italian telecom market with four operators: TIM, Vodafone-Fastweb, Iliad, and WindTre, putting pressure on prices and competition [1].

The announcement comes after Iliad Italia reported a 9.2% revenue increase in the first half of 2025, with a reduced loss of EUR53 million compared to EUR117 million a year earlier. This growth is attributed to a stable performance in France and continued customer growth in Italy [1]. Despite these positive financial results, TIM shares plummeted by 8.81% to EUR0.41 following the news, reflecting investor concerns about the market's future without a potential merger [1].

The Italian telecom market has been experiencing intense price competition, with operators pushing for consolidation to reduce the number of mobile network operators from four to three. However, the lack of a TIM/Iliad merger will likely keep the market divided, potentially leading to further price pressures and increased competition [1].

In response to the merger talks ending, investors have lowered their stakes on a TIM/Iliad merger, with the state-backed Poste Italiane becoming TIM's largest investor. This shift highlights the uncertainty surrounding the Italian telecom market and the potential challenges it faces in the coming years [1].

The future of the Italian telecom market remains uncertain, with the lack of a TIM/Iliad merger likely to have significant implications for the industry. Investors and financial professionals should closely monitor the market's developments and the impact of increased competition on prices and profitability [1].

References:
[1] https://logistics.maritimeprofessional.com/western-europe/2025/08/28/frances-iliad-drops-italian-tieup-plan-telecom-italia-shares-fall