Vodafone India has confirmed that it has reached an agreement to acquire rival Idea Cellular. The deal, which is being painted as a merger, will create..
Vodafone India has confirmed that it has reached an agreement to acquire rival Idea Cellular. The deal, which is being painted as a merger, will create India’s largest operator with some 377 million customers.
The company revealed it was in talks with Idea Cellular over a deal in January, and the coming-together was announced today. Subject to the relevant approvals, it is expected to close sometime next year.
Vodafone is taking an initial 45.1 percent stake in the combined entity, with Idea Cellular parent Aditya Birla Group holding 26 percent. The duo have arranged a schedule that will see those shareholdings equalized over time. However, if after four years both parties don’t own the same amount, Vodafone has agreed to sell down its shares to ensure parity of ownership over the following five years.
