LONDON, March 15 (Reuters) - Vodafone will return 4 billion euros ($4.35 billion) of capital and halve the dividend from its next financial year after the sale of its Italian operation to Swisscom agreed on Friday, and the sale of its Spanish unit agreed last year.

The British company said it would rebase its dividend to 4.5 euro cents a share from financial year 2025 onwards, and 4 billion euros of capital would be returned via share buy backs, with a new leverage range of 2.25x – 2.75x.

Chief Executive Margherita Della Valle said the Italian deal was the third and final step in reshaping Vodafone's European operations.

"Going forward, our businesses will be operating in growing telco markets - where we hold strong positions - enabling us to deliver predictable, stronger growth in Europe," she said.

Shares in Vodafone rose 4.3% in early deals on Friday.

As well as the Italian and Spanish sales, Della Valle has announced the merger of Vodafone UK with Hutchison's Three UK, leaving the group focused on its largest market, Germany, other smaller European countries, Africa and Vodafone Business.

She said Vodafone Germany boss Philippe Rogge would leave Vodafone and current UK chief executive Ahmed Essam would oversee the country in a new role of executive chairman Vodafone Germany and chief executive European Markets. ($1 = 0.9194 euros) (Reporting by Paul Sandle; editing by William James)