Swisscom has finalized its €8 billion ($8.33bn) acquisition of Vodafone Italy.

Completion of the deal last week followed Swisscom's announcement just before Christmas that it had received all the necessary regulatory approvals to conclude the acquisition.

Swisscom noted that the acquisition is "a key step for Swisscom to achieve its strategic objective of profitable growth in Italy."

The company said it expects to benefit from annual synergies amounting to €600 million ($621.4m) through the deal.

Vodafone first announced in March that it had agreed to sell its Italian unit to Swisscom, with the latter merging Vodafone with its Italian subsidiary Fastweb.

The merger combines 3.4 million Fastweb customers with Vodafone's 20 million, making it the second-biggest telco in Italy behind struggling Telecom Italia (TIM).

Swisscom confirmed that the existing commercial brands Fastweb, Vodafone, and Ho Mobile will continue to be used.

"We herald a new era in Italian telecommunications. By embracing the opportunity of combined forces, we create a stronger, more innovative organization to lead Italy into a sustainable digital future, empowering people, businesses, and public administrations," said Walter Renna, CEO of Fastweb + Vodafone.

Swisscom CEO Christoph Aeschlimann added: "The improved positioning in Italy will create long-term value for all stakeholders – thanks to growing cashflows and dividends in the future. At the same time, the focus on the Swiss market remains unchanged with continued high investments in innovation, top-quality service, and next-generation infrastructure."

Italy's communications regulator AGCOM (Autorità per le Garanzie nelle Comunicazioni) approved the deal in November, while the European Commission (EC) in September and the Italian government gave their blessing in May.

Swisscom noted that Italy's Competition Authority cleared the merger on December 20, while MIMIT approved the deal a day earlier.

For Vodafone, the sale is part of its overall strategy to streamline and revamp its operations. The company has already completed a sale of its Spanish business this year to UK investment firm Zegona, and is on track to merge with Three in the UK.