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India: Vodafone and Idea closer to merging

 |  January 14, 2018

Idea Cellular filed a statement to stock exchanges on Friday, January 12 stating that India’s National Company Law Tribunal had cleared the company’s proposed merger with Vodafone India Ltd. to create the country’s largest wireless carrier company.

The merger agreement is based on equal rights and equal shareholding between Idea Cellular’s promoters and Vodafone Group. To achieve this, Vodafone has kept its 42% stake in Indus Towers Ltd, valued at around US$5 billion, out of the deal’s purview.

Idea parent company Aditya Birla Group and Vodafone Group announced the planned merger in March 2017.

The merged company will become the world’s second largest telecom and India’s largest with over 400 million clients.

The deal has now cleared Competition Commission of India and the Securities and Exchange Board of India as well leaving only the Department of Telecommunications’ approval pending.

Full Content: Live Mint

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