logo-loader
viewVodafone Group plc

Vodafone completes merger of India business with Idea Cellular

The combined business will be renamed Vodafone Idea Ltd and will remain listed in India

Vodafone
Vodafone has been consolidating businesses in markets where there is tough competition

Vodafone PLC (LON:VOD) has completed the merger of its India business with Idea Cellular to create the largest telecoms operator in the nation.

The company announced the deal in March in a bid to strengthen its position in India’s competitive mobile market.

READ: Vodafone Australia and TPG agree A$15bn merger to take on Optus and Telstra

The combined business will be renamed Vodafone Idea Ltd and will remain listed in India.

Aditya Birla Group, the majority shareholder of Idea Cellular, is to buy a 4.8% stake in Vodafone Idea from Vodafone for INR26bn (£281mln). Following completion of the deal, Vodafone will own a 45.2% stake in Vodafone Idea and Aditya Birla will own a 26.0% stake.

Former Vodafone India chief operation officer Balesh Sharma has been appointed the chief executive of the merged business.

In the year to June 30, Vodafone India and Idea generated revenue of INR585bn (£6.3bn) and earnings (EBITDA) of INR107bn (£1.2bn).

Vodafone said the merged company is expected to deliver INR140bn (£1.5bn) in run-rate cost and capex synergies.

READ: Vodafone shares drop as it posts slowdown in first quarter organic service revenue

The news comes a day after Vodafone said its Australian business and local rival TPGTelecom Limited have agreed to merge into a single A$15bn telecommunications company that will be able to better compete with Telstra and Optus.

Fierce competition in some of its markets, including a price war in India, led to a slowdown in first-quarter organic service revenue.

Quick facts: Vodafone Group plc

Price: 143.86 GBX

LSE:VOD
Market: LSE
Market Cap: £38.51 billion
Follow

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events

NO INVESTMENT ADVICE

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

FOR OUR FULL DISCLAIMER CLICK HERE

Watch

Summit Therapeutics' Glyn Edwards talks US$50mln backing and ridinilazole...

Summit Therapeutics PLC's (LON:SUMM, NASDAQ:SMMT) CEO Glyn Edwards sat down with Proactive London's Andrew Scott following the news of a US$50mln funding deal with biotech billionaire Bob Duggan. The investment will help get the company’s next-generation antibiotic through phase III clinical...

5 hours, 56 minutes ago

RNS

Total Voting Rights

1 week ago

Holding(s) in Company

2 weeks ago

Director/PDMR Shareholding

2 weeks, 3 days ago

Director/PDMR Shareholding

2 weeks, 6 days ago

Holding(s) in Company

3 weeks, 5 days ago

Half-year Report

3 weeks, 6 days ago

2 min read