12:21 PM EDT, 03/15/2024 (MT Newswires) -- (Updates with the latest stock price movement in the headline and first paragraph.)

Vodafone Group's ( VOD ) shares were up 6.5% in recent Friday trading after it agreed to sell its Italian mobile phone business to Swisscom in an 8 billion euro ($8.72 billion) all-cash deal, the companies said Friday.

The transaction, expected to close in the first quarter of 2025, remains subject to regulatory approvals but does not require a vote by Swisscom shareholders.

Swisscom aims to merge Vodafone Italia with its Fastweb broadband subsidiary in Italy, creating annual run-rate synergies of 600 million euros, the company said. The transaction will be 100% cash and will be fully debt-financed, a statement said.

The deal also allows Swisscom to use the Vodafone brand for up to five years after closing, while Vodafone will provide certain services for an initial annual charge of about 350 million euros a year. "We are opening the opportunity to establish a broader commercial partnership between Swisscom and Vodafone," said Margherita Della Valle, chief executive officer of Vodafone.

Price: 9.05, Change: +0.56, Percent Change: +6.54