Vodafone India-Idea Cellular Merger To Create India’s Largest Telecom Operator

Idea Cellular Ltd. agreed to merge Vodafone Plc’s Indian unit with itself to create the country’s largest mobile services operator in a competitive market disrupted by Mukesh Ambani-led Reliance Jio Infocomm Ltd.’s free services.
Vodafone will hold 45.1 percent of the merged entity, while Idea Cellular’s promoter, Kumar Mangalam Birla-led Aditya Birla Group, will hold 26 percent, according to a filing to stock exchanges.

Both Vodafone and Idea Cellular brands will continue, Vodafone Group Chief Executive Officer Vittorio Colao said in a press conference.

The combined entity will have a revenue market share of 41 percent, ahead of Bharti Airtel Ltd. (33 percent), and an annual revenue of over Rs 81,500 crore, according to data compiled by BloombergQuint.

Bloomber link

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