Government clears Vodafone, Idea merger

The government has approved the merger of Vodafone India and Idea Cellular that will create the country’s largest mobile phone operator worth more than $23 billion with a 35% market share. The department of telecommunication has given its stamp of approval for the amalgamation after the two firms provided Rs.7,249 crore towards onetime spectrum charges.

The combined entity, Vodafone Idea, with nearly 430 million customers, would overtake Bharti Airtel, which currently has 344 million users. The deal also comes at a time of raging price war.

In Mumbai, Aditya Birla Group chairman Kumar Mangalam Birla confirmed getting the nod, saying it marks the beginning of an “exciting journey”. “The actual work starts now, so we will see...we are very optimistic about it,” Birla will be the non-executive chairman. 

No comments: