Telecom Italia sells Sparkle subsea cable unit to Italian government consortium for €700 million

Telecom Italia (TIM) finalized the sale of its Sparkle subsea cable unit to a consortium led by Italy's Ministry of Economy and Finance (MEF) and Retelit for €700 million ($826 million), following European Commission approval on April 16, 2026. The transaction transfers ownership of Sparkle's 600,000km subsea cable network spanning Europe and the Americas to state control as part of Giorgia Meloni's government strategy to nationalize strategic infrastructure assets. The deal was deemed not to threaten competition by the European Commission, which noted moderate combined market shares and viable alternative suppliers in overlapping markets. TIM had previously announced plans to complete the sale in the first half of 2026, following its January 2025 agreement to divest the unit. The Sparkle network connects multiple continents, making this acquisition a critical expansion of Italy's state-owned telecom infrastructure portfolio.

Counterparts (4)

Seller

Telecom Italia (TIM)

company · 1 deals

Telecom Italia (TIM) is a major telecommunications company in Italy, with a focus on fixed and mobile telephony, internet services, and digital solutions. They are involved in infrastructure development related to their core business, including network upgrades and expansion.

Buyer

ClimeFi

company · 2 deals

ClimeFi is an investment manager focused on climate infrastructure, targeting sustainable assets across Europe. They invest in energy transition, digital infrastructure, sustainable transport, and circular economy sectors, aiming for long-term value creation and positive environmental impact through their Climate Infrastructure Fund.

Retelit

company · 1 deals

Retelit is a telecommunications company in Italy focused on the B2B market, offering infrastructure and digital solutions with coverage across Italy. They provide connectivity, cloud, cybersecurity, and voice services, leveraging their national and international network and data centers.

regulator

European Commission

company · 6 deals

The European Commission is the executive branch of the European Union, responsible for proposing legislation, implementing decisions, upholding the EU treaties and managing the day-to-day business of the EU. It plays a significant role in infrastructure development through funding programs, policy initiatives, and regulatory frameworks.