Vodafone and Idea Merge
Yes, India is about to get its largest telecom company which is going to be the merge of Vodafone and idea with 39.25 crore customers that will surpass the current largest telecom company Bharti Airtel with 26.44 crore customers as per the data of the telecom regulatory authority of india. Such mergers are not everyday scene. As highlighted by both the companies, this is quite a complex deal involving amalgamation of businesses, transfer of shares, appointing officials and synergising operations. Rome was not built in a day and likewise this mega deal took several months. In fact the idea was initiated in the year 2016 itself but major talks over it took place in January this year.
Director general of the cellular operator’s association of India, Mr. Rajan Mathews said that “due to the poor financial health of the telecom sector in India, we are witnessing such mergers, acquisitions and combinations of companies. Now paying heed to the business part of the merge, as per the terms of the deal, Vodafone will own 45.1% of the merged entity and idea will have 26% of the stake, whereas the rest will be owned by public shareholders after the merger that is expected to be completed by next year.