MADRID, 29 Oct. - Zegona, a British investment firm, is finalizing the acquisition of at least 50% of Vodafone's business in Spain in a deal valued at around 5 billion euros. An announcement of the deal could be made "in the coming days", according to information from the American agency 'Bloomberg'.

Despite being in an "advanced stage", the deal could still "be delayed or even fail", emphasizes the report. Vodafone has declined to comment on the matter, according to sources consulted by Europa Press.

On September 22, Zegona confirmed in a statement the existence of "discussions" with Vodafone regarding the acquisition of the company's business in Spain. However, they also highlighted that there was no certainty that the deal would be completed.

Zegona also mentioned that they were in talks with various banks to secure financing for the potential deal. They emphasized that the completion of the deal would be subject to, among other things, "an agreement on the final terms with Vodafone" and the conclusion of the due diligence process for the Spanish subsidiary.

'Expansión', an economic newspaper, reported on Saturday that the British firm had already obtained the necessary financing and that the operation would be fully conducted through debt, with plans to later replace part of the credits with capital.

Vodafone put its Spanish subsidiary under strategic review in May and since then, there have been various reports about the interest of different investment firms in acquiring the business.

Aside from Zegona, a consortium led by private equity firm RRJ Capital is also considering making an offer of around 5 billion euros for the subsidiary.

RRJ Capital, directed by former Goldman Sachs banker Richard Ong, has reportedly secured financing for the potential deal. However, sources have stated that deliberations are ongoing and the group led by RRJ might still decide not to proceed with an agreement.

In 2021, RRJ Capital already invested 500 million euros in Vantage Towers, Vodafone's European mobile phone tower unit, and still holds a nearly 3% stake in the company.

In addition to Zegona and RRJ Capital, other potential buyers for Vodafone Spain include Apollo, Apax, Illiad, and Liberty.

In this context, Vodafone is considering various options for its business in Spain, including a potential sale of the subsidiary, which they are exploring with the market. Another possibility is divesting part of its fixed network in the country.

However, both avenues will depend on the performance of Vodafone in Spain and the potential conditions imposed by Brussels regarding the merger of Orange and MásMóvil, according to sources familiar with the situation.

Market sources have pointed out that the imposition of "stringent remedies" by Brussels to approve the merger of Orange and MásMóvil in Spain would encourage a total or partial sale of the subsidiary.

"Brussels' decision on the merger of Orange and MásMóvil has an impact not only in Spain but also on the entire sector in Europe. A ruling with tough remedies would dampen consolidation expectations in other markets and growth. Furthermore, it would be another blow to telecom stock prices, which have declined by 45% in the last ten years," added the sources.

In contrast, a merger without conditions would help all operators -- both in Europe and Spain, according to the sources -- to grow further and lead to a "quicker recovery of Vodafone in Spain". This, in turn, would prompt the company to reconsider the need for a potential sale of the subsidiary.