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India: Regulators push for telco market consolidation through new M&A policy

 |  October 31, 2013

Authorities are looking to implement a more “liberal” merger review policy in part of efforts to consolidate India’s telco market, according to telco minister Kapil Sibal.

The new policy, which Sibal said would be announced “very soon,” will aim to strengthen the market that is said to be best suited for five or six major players. Some of the nation’s 22 circles have more than 10 competing telecom firms, reports say.

Such a fragmented market sparked the need for better M&A policy, reports say, and already revised legislation would allow a merged company to control up to 50 percent of the market. Current policy says mergers cannot yield market control of more than 35 percent.

Full content: Economic Times of India

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