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India’s CCI Greenlights Atlas’ Move to Boost Stake in Vodafone

 |  November 30, 2023

In a significant development for the telecommunications sector, the Competition Commission of India (CCI) has given its nod to Atlas 2022 Holdings Limited for its proposed acquisition that will allow an increase in its stake in Vodafone from the current 14.6% to below 25%. This move is expected to enhance Atlas’s voting rights and shareholding in Vodafone, marking a strategic milestone for both entities.

The approval, granted by CCI, comes as a result of meticulous scrutiny of the proposed acquisition, which is set to unfold through a combination of on-market and off-market transactions, as outlined in an official statement from the Competition Commission of India, reported CNBC.

Atlas 2022 Holdings Limited, a wholly-owned subsidiary of the Emirates Telecommunications Group Company PJSC (e&), was established on February 24, 2022, in the Cayman Islands. The subsidiary was specifically formed with the mandate to facilitate the acquisition and retention of e&’s existing interest in Vodafone, highlighting the long-term vision and commitment of the Emirates Telecommunications Group in the Indian telecommunications market.

This move is expected to have a substantial impact on the dynamics of the telecommunications industry in India, as Atlas 2022 Holdings Limited strategically maneuvers to strengthen its position within Vodafone. The acquisition, once completed, will not only result in an increased stake for Atlas but will also likely influence the decision-making processes within Vodafone, given the higher voting rights that will be at its disposal.

Industry experts anticipate that this development could pave the way for enhanced collaboration and synergies between Atlas and Vodafone, creating new opportunities for innovation and growth in the rapidly evolving telecommunications landscape. It also reflects the confidence of international players, such as the Emirates Telecommunications Group, in the potential and stability of the Indian market.

As the telecommunications sector continues to witness strategic realignments and partnerships, the CCI’s approval of Atlas 2022 Holdings’ acquisition is a testament to the regulatory body’s commitment to fostering a competitive yet stable business environment.

Source: CNBC