Wed. May 15th, 2024
Competition Commission of India(CCI)

The Competition Commission of India(CCI) has approved the merger of Vodafone India and Idea Cellular. The deal is signed for an amount of ₹14,800 crores. The merger between these two telecom operators will create the country’s largest telecom operator, creating significant efficiencies and synergies.

The regulator has kept the close eye on the transaction and announced that there is no appreciable adverse effect on competition from the proposed merger.

Shardul Amarchand Mangaldas and Co, which advised Vodafone in the deal, said the regulator has unconditionally approved the merger of the telecommunications businesses of Vodafone India and its wholly-owned subsidiary Vodafone Mobile Services, with Idea Cellular.

Idea Cellular said that the transaction is expected to close during the calendar year 2018 subject to customary approvals.

 Post the transaction, Vodafone will own 45.1% stake in the merged entity while the Aditya Birla group, Idea’s parent, will have 26% shareholding after paying ₹3,874 crores cash for a 4.9% stake. While the remaining 28.9% will be held by the other shareholders.

By Bharat