Telecom Italia (TIM) last week received approval from the European Commission (EC) to sell its fixed network spin-off NetCo to an entity controlled by US investment company KKR.

The EC found that there were no fears around competition to stop the €22 billion ($23.9bn) deal from going ahead.

Telecom Italia
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The approval follows that of the Italian government's decision to approve the sale earlier this year.

It could spur further M&A opportunities for the telco, according to its CEO Pietro Labriola.

In an interview for Bloomberg’s Italian-language podcast, Quello Che i Soldi Non Dicono, Labriola said that reducing its debt pile will enable TIM to “play an active role in Italy’s market consolidation process which will certainly take place in the coming years."

The telco is the biggest in Italy, even despite the planned €8 billion ($8.7bn) merger between Swisscom subsidiary Fastweb and Vodafone.

TIM agreed to sell its landline grid network to US investment firm KKR in November.

The deal, which has been on the cards for some time, has been supported by Giorgia Meloni's Italian government since 2022, which plans to take a 20 percent stake.

Debt-ridden TIM expects the sale to reduce its debt by €14bn ($15.25bn).

TIM's top investor, Vivendi, has previously called the deal "unlawful." The company is said to be considering its future with TIM.