Vodafone has revealed it is in advance talks to sell its Italian telecoms arm to Swisscom, in a deal that would value the unit at €8bn.

According to the telecoms giant, a sale to Swisscom would deliver “the best combination of value creation, upfront cash proceeds and transaction certainty for Vodafone shareholders”

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The proposed deal, which Swisscom would pay in cash, would be valued at €8bn on an enterprise basis, the company revealed.

In a separate statement, Swisscom unveiled plans to merge Vodafone Italia with Fastweb, its subsidiary in Italy. However, both companies said there can be no certainty that any transaction will ultimately be agreed upon, and a further announcement will be made if required.

Swisscom said the planned merger of the firms would “bring together complementary high-quality mobile and fixed infrastructures, competencies and capabilities to create a leading converged challenger”.

It stated:”The increased scale, more efficient cost structure and significant synergy potential would enable the combined entity to unlock value for all stakeholders.”

The move comes as Vodafone agreed to sell its Spanish business for up to €5bn to Zegona Communications in October last year.