Vodafone To Be Merged With Idea
posted on Jan 30, 2017 @ 4:24PM
Speculations were rife that, British mobile phone giant Vodafone and India’s one of the top mobile networks Idea Cellular were exploring a deal to help fend off Reliance Jio whose recent arrival shook up India's ultra-competitive mobile network market.
Vodafone officials confirmed the news today saying they were in talks to merge their Indian unit with Idea Cellular in a move that would create India's largest telecoms company.
"Vodafone confirms that it is in discussions with the Aditya Birla Group about an all share merger of Vodafone India (excluding Vodafone's 42% stake in Indus Towers) and Idea. Any merger would be effected through the issue of new shares in Idea to Vodafone and would result in Vodafone de-consolidating Vodafone India. There is no certainty that any transaction will be agreed, nor as to the terms or timing of any transaction," Vodafone said in a statement.
A merger between Vodafone India and the Mumbai-based Idea Cellular would turn India's multi-billion dollar telecommunications market on its head, according to global brokerage firm CLSA.