Vodafone Spain and Telefónica create FibreCo as fiber-optic services joint venture

Cuatrecasas has advised Zegona and Vodafone Spain on an agreement with Telefónica to form a joint venture—FibreCo—sharing the Fiber-to-the-Home (FTTH) network. Vodafone Spain will have a 37% stake in the undertaking and Telefónica 63%. Zegona is a British investment fund engaged in the TMT sector and owned by Vodafone Spain.

FibreCo will cover 3.6 million premises, enabling Vodafone and Telefónica to maximize use of the FTTH network and provide high-quality fiber-optic services and technological efficiency to existing and potential customers, retailers and wholesalers within their coverage area. This partnership is expected to improve both companies’ competitiveness and ensure customer access to advanced networks, starting with a penetration level of approximately 40% and 1.4 million customers.

The network will be a benchmark in sustainable development, meeting high ESG standards through a more efficient use of the network’s assets. The transaction, subject to regulatory approvals, will strengthen broadband supply in Spain. Once the transaction is closed, both companies intend to incorporate a third financial investor in FibreCo to support their growth plans in the Spanish market.

The Cuatrecasas advisory team was made up of lawyers Federico Roig, Mariano Ucar, Pedro López-Dóriga and Pablo del Moral (Corporate and M&A), with the support of Irene Moreno-Tapia and Paula Wignall (Antitrust & Competition), and Enrique Carrera, Julene Areitio and Mario Mas (FDI).