Poste Italiane Sets €700 Million Annual Synergy Target in TIM Deal

Poste Italiane expects its planned integration of Telecom Italia (TIM) to generate about €700 million in annual pretax synergies once fully implemented, adding scale across postal services, finance, insurance and telecommunications.

The target includes €500 million in cost savings and more than €200 million in revenue synergies. Poste expects the cost savings to emerge within the second year after completion of the offer and the revenue synergies within three years. One-off pretax costs to realize the savings are estimated at about €700 million.

Poste secured final acceptance for 85.823% of TIM’s share capital after the offer reopened Sept. 29, 2026. The transaction is expected to have a positive effect on earnings per share from fiscal 2027 and a neutral effect on Poste’s 2026 dividend per share.

The combined group would have about €26.9 billion in revenue and €4.8 billion in pro forma EBIT, excluding synergies and based on 2025 results. The plan would bring together nearly 13,000 Poste post offices, more than 4,000 TIM retail stores and more than 49,000 third-party partners.

The companies’ combined commercial reach would also include more than 19 million active digital customers and more than 4 million daily active users of Poste’s P app. TIM had €982 million in deferred tax assets as of Dec. 31, 2024, and Poste said some of those assets could become recoverable through the combination.

Poste announced the voluntary cash-and-share offer on March 22. The original consideration consisted of €0.167 in cash and 0.0218 newly issued Poste shares for each TIM share, implying a value of €0.635 per share based on the March 20 closing price.

“TIM is the perfect fit to further enhance our platform,” Poste Italiane CEO Matteo Del Fante said in the company’s first-half results.

Poste reported €6.8 billion in first-half 2026 revenue, €1.8 billion in adjusted EBIT and €1.2 billion in net profit. Del Fante said Poste expects to present the combined entity’s business plan in the first quarter of 2027.