MILAN/MADRID (Reuters) – Italy’s Telecom Italia (TIM) <TLIT.MI> and Spanish lender Banco Santander <SAN.MC> have agreed a deal to run a joint venture on the phone group’s consumer credit business, two sources with knowledge of the matter said on Thursday.
The unit will offer TIM’s clients financing facilities to buy mobile devices.
Chief Executive Luigi Gubitosi said earlier this year that setting up a credit consumer company would reduce TIM’s debt by 500-600 million euros.
TIM and Santander declined to comment.
(Reporting by Elvira Pollina in Milan and Jesus Aguado in Madrid)