Xavier Niel to Spend €5.1 Billion for 16.2 Percent Stake in Vodafone

Xavier Niel will invest €5.1 billion to secure a 16.2 percent holding in Vodafone, positioning him as the largest shareholder of the major European and African operator.

Xavier Niel increases his stake in Vodafone. The owner of Free and Iliad plans to complete the purchase via Vega, a dedicated investment vehicle controlled by the Niel family. Vega is obtaining the full position previously owned by the Emirati group E&. The deal, reported by AFP on July 10, still requires regulatory clearance that is anticipated before the end of the year.

Vega has declared it harbours no plan to secure majority ownership or to bid for all outstanding shares. As a result Niel is not assuming control of the company.

The purchase builds on Niel's prior involvement. The French entrepreneur already owned an approximately 2.5 percent interest in Vodafone, purchased in 2022 once Iliad's attempt to acquire the group's Italian business collapsed. Acquiring the E& block simply raises his commitment to a higher scale.

Niel's telecom holdings span multiple continents. In addition to Iliad's operations in France, Italy and Poland, he maintains positions in various carriers throughout Europe and Latin America. Vega's statement indicates the enlarged portfolio will serve 139 million subscribers, employ 45,000 staff and generate €24 billion of yearly revenue across 26 countries. Vodafone aligns with the long-term consolidation approach Niel has followed, from his interest in Belgian Proximus to the purchase of Telefónica's Chilean unit.

Vodafone reports improved financial performance. The British operator recently divested its Spanish and Italian units, completed a merger with rival Three in the United Kingdom and narrowed its net loss to €397 million in the fiscal year that closed in March, against €4.17 billion twelve months earlier. News of the share transaction lifted Vodafone stock more than 10 percent on the London Stock Exchange, marking its strongest single-day advance since the late 1990s.

The deal leaves Free mobile plans unchanged. Subscribers to Free in France will see no alteration to their service, with neither fresh offerings nor tariff cuts on the horizon. The operation remains a financial and strategic step at continental level. Ongoing difficulties in attracting fresh customers inside a challenging domestic market help clarify why Niel is simultaneously pursuing SFR assets.