New Delhi, July 24 (IANS) The Competition Commission of India (CCI) has given approval for the Vodafone-Idea merger.
“Idea Cellular is pleased to confirm receipt of the letter from the Competition Commission of India dated July 24, 2017, according approval to the proposed merger of Vodafone India, Vodafone Mobile Services Limited, and Idea Cellular under sub section (1) of section 31 of the Act,” Idea Cellular said in a statement.
“The transaction is expected to close during calendar year 2018 subject to customary approvals,” it added.
Vodafone India and Aditya Birla Group-promoted Idea Cellular on March 20 announced their much-awaited amalgamation.
Kumar Mangalam Birla, Chairman of the Aditya Birla Group, will be its Chairman.
“Vodafone Group and Idea Cellular announced they have reached an agreement to combine their operations in India (excluding Vodafone’s 42 per cent stake in Indus Towers) to create India’s largest telecom operator,” a joint statement by the companies had earlier said.
“The combined company would become the leading communications provider in India with almost 400 million customers, 35 per cent customer market share and 41 per cent revenue market share,” it added.
The merger will create an entity with over Rs 80,000 crore revenue.
“Vodafone will own 45.1 per cent of the combined company after transferring a stake of 4.9 per cent to the promoters of Idea and/or their affiliates for Rs 3,874 crore in cash concurrent with the completion of the amalgamation,” the statement said.
“The promoters of Idea will hold 26 per cent of the company and the balance will be held by the public.”