Telefónica is considering a takeover of Vodafone Spain as part of its Europe-focused strategy under new CEO Marc Murtra, according to El Confidencial.

Vodafone Spain was acquired last year by UK investment firm Zegona for €5bn ($5.84bn). Telefónica has reportedly secured backing from its key shareholders, the Spanish state holding SEPI, CriteriaCaixa, and Saudi Telecom Company (STC), to explore a potential bid. Murtra has also informed government officials of the company’s interest.

Any deal would face regulatory scrutiny in both Spain and Brussels, as it would further consolidate a market currently dominated by Telefónica, Vodafone, MasOrange, and Digi.

Murtra, who took over leadership of Telefónica this year, has placed consolidation in Europe at the core of the company’s strategy. In parallel, Telefónica has been retreating from Latin America, selling units in Colombia, Ecuador, Peru, and Argentina, and is in talks over its Mexican operations. The carrier plans to retain its business in Brazil.

A successful bid for Vodafone Spain would strengthen Telefónica’s position in its home market and accelerate its strategy of building scale in Europe while divesting non-core assets elsewhere.

If you think we missed any important news, please do not hesitate to contact us at [email protected].

Can`t stop reading? Read more.