Vodafone, Idea Cellular announce merger

By Rob 0

Idea Cellular Ltd board on Monday approved the merger of Vodafone India Ltd and its wholly-owned arm Vodafone Mobile Services with the company.

The deal would create the largest telecom company in one of the world’s most competitive markets. The initial accord is unlikely to spell out the merged entity’s shareholding structure because the due diligence has not yet been completed, said an earlier Bloomberg report.

Also read: A Vodafone and Idea merger is no panacea for the telecom sector

Carriers in India are seeking to consolidate after Reliance Jio Infocomm Ltd, backed by billionaire Mukesh Ambani, introduced free services in September, undermining industry revenue. The competitive pressure is creating an alliance between the country’s No. 2 provider, Vodafone India, and its third largest, Idea, controlled by Aditya Birla Group.

Bloomberg contributed to this story.

First Published: Mon, Mar 20 2017. 09 40 AM IST

[Source: livemint.com]