Vodafone seems to have succeeded in merging with Idea Cellular. The Indian Unit of Vodafone will be merged with Idea Cellular in 2 years. The board of Idea Cellular has approved the merger. Post merger, Vodafone will own 45.1% of the shares in the combined entity. This will create India’s largest telecom company with 400 million customers commanding 35% of Market Share.
This comes as a relief to both the companies after they faced strict competition from Reliance Jio which has invested USD 20 Billion and slashing the rates of 4G to a greater extent and also offering lifetime free calls and SMS.
Idea will have the sole right to appoint the Chairman of the merged entity whereas the appointment of Chief Financial Officer or CFO will be vested with Vodafone.