Vodafone and Idea are soon going to merge in India for the better network, connectivity, and services across the country. In a bid to stay ahead of revolutionary Reliance Jio, Airtel, and BSNL, Vodafone India is now making a move ahead by merging with the telecom peer Idea Cellular.
Vodafone to merge with Idea by end of FY 17
The merger of Vodafone and Idea is expected to create a history of becoming India’s one of the largest telecom network company. Soon after the comprehensive review of all the transactions, the Competition Commission of India has given its nod to the union of India’s two giant players in the field of telecommunication. The industry experts believe that the merger is done with the sense of competitiveness and venture into the market with a new entrant to bring down the demand and sale of Reliance Jio and Airtel. The rumors are also rife that post the merger, the market share of Vodafone 17.86% and 16.62% of Idea will evade Airtel while the market share of Reliance Jio will also get shaken.
Now with the year 2017 soon coming to an end, the process of the Vodafone- Idea merger is soon going to complete. Both the parties are now waiting for the statutory approvals from the National Company Law Tribunal (NCLT) and Department of Telecommunications (DoTs). It is anticipated that after the completion of the merger, a new entrant by Vodafone and Idea will collectively enter the India arena of telecommunications in the first quarter of 2018.
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Stake of Vodafone and Idea in India post-merger
Talking about the merger of Vodafone and Idea in India, as per the anticipation, there will be over 35% market share of the new venture post-merger of Vodafone and Idea and 400 million users. The deal was signed by Vodafone India with the company value of Rs 82,800 crore and Idea with Rs 72,200 crore, giving the companies stake hold of 45.1% and 26%, respectively. The rest percentage of the stake will be owned by other shareholders.
Let’s hope the merger of Vodafone and Idea, completes soon and India gets a new option for the better network for seamless telecommunication at reasonable tariff plans.
Source: thehindubusinessline.com
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