Xavier Niel pays €5.1 billion to become Vodafone’s largest shareholder

Xavier Niel has made a landmark move on the global telecoms stage. The founder of Free is paying €5.1 billion to secure a significant stake in the British giant Vodafone.

This is the summer’s big shockwave in Europe’s telecoms sector. Xavier Niel is set to become the largest shareholder in the UK heavyweight Vodafone. Through his family holding company Vega, the Free founder has reached a historic agreement to buy the entire stake held by the Emirati group e&, which has opted to reassess its strategic priorities and refocus on its Middle East operations. A major transaction valued at close to €5.1 billion.

Under this deal, the entrepreneur will take just over 16% of the historic British operator’s share capital. The market response in London was immediate: Vodafone shares jumped by almost 14% at the open, marking the company’s biggest one-day rise since the late 1990s.

A global empire

For the French billionaire, it is a striking comeback. In recent years, he tried twice to buy Vodafone’s Italian subsidiary, only for his bids to be turned down. This time, he is entering through the front door by targeting the parent group itself.

Xavier Niel is cementing his status as one of the most influential consolidators in telecoms. Through his Iliad brand, he already counts more than 50 million subscribers across Europe, anchored by strong positions in France, Italy and Poland. Yet his ambitions extend well beyond the continent. In February, he again showcased his global expansion strategy by acquiring the Chilean operations of Spanish giant Telefónica, via his NJJ and Millicom structures. Enough to spin an international web at impressive speed, with close to 139 million subscribers worldwide.

Europe’s telecoms landscape is being reshaped

If Xavier Niel is investing on this scale now, it is because the target is deemed worth it. Under chief executive Margherita Della Valle, Vodafone has launched a far-reaching restructuring programme: the group has chosen to exit difficult markets such as Spain and Italy in order to concentrate more firmly on Germany and the United Kingdom. In the UK, the operator has also completed its historic merger with Three UK, creating the leader in the British mobile market-over which it secured sole control barely two months ago.

This more focused, simplified profile represents a major financial opportunity for Xavier Niel, who is well placed to unlock substantial hidden value. The billionaire has described the operator as an unmissable investment opportunity, highlighting its geographically diverse footprint, particularly across the African continent.