Reliance Jio effect, Merger of Vodafone with Idea- Facing intense competition from Reliance Jio, British telecom giant Vodafone announces the merger of their Indian telecom businesses with Idea to create the largest telecom operator in the country. Airtel would be on the second spot with a market share of 35.6 per cent, along with Telenor.
Airtel and Telenor are planning to merge their operations.
This mega-merger will create a new Telecom company that will be the largest provide in majority of telecom circles except Jammu & Kashmir. Vodafone having 204 million subscribers and Idea 190 million (at the end of 2016).
The combined entity will be having the market share of 35%. Aggregate revenues of over Rs 80,000 crore represent 42% of the national Income.
Vodafone will hold 45 percent in the combined entity, Idea promoters 26 percent, and the rest by the public.
Vodafone’s 45 percent stake is after selling a 4.9 percent stake to the Idea promoters for Rs 3,900 crore, allowing the AB Birla Group to up its stake to 26 percent.
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