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The newly formed entity will be known as Vodafone Idea and will become India’s largest telco overnight
The long awaited merger between Vodafone India and Idea Cellular has finally been completed, following the issuance of regulatory approval from India’s governing bodies.
The newly formed entity will be named Vodafone Idea and will boast 408 million subscribers across the sub-continent.
Last year the companies posted combined revenues of around €7.1bn.
Balesh Sharma will become chief executive officer of Vodafone Idea, stepping up from his previous role as chief operation officer at Vodafone India.
The merger comes in the nick of time for both companies, as India’s savage market conditions continue to take their toll on Indian telcos. Vodafone Idea expects that the merger will deliver €1.7bn of cost saving synergies and reductions in capex in the first year alone.
In addition to the completion of the merger, Aditya Birla Group is separately completing the purchase of an additional 4.8 per cent stake in the newly formed Vodafone Idea, in a deal reportedly worth over €300 million.
Vodafone Group will own 45.2 per cent of the newly formed company, with Aditya Birla Group’s holding rising to 26 per cent.
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