Tuesday, Jul 14, 2020 | Last Update : 09:24 AM IST

112th Day Of Lockdown

Maharashtra26992414450710482 Tamil Nadu142798925672032 Delhi113740913123411 Gujarat42808298062056 Karnataka4158116249759 Uttar Pradesh3813024203955 Telangana3622123679365 West Bengal3144819213956 Andhra Pradesh3110316464365 Rajasthan2493618630518 Haryana2192916637308 Madhya Pradesh1820713208653 Assam178081141741 Bihar1742112364125 Odisha13737925591 Jammu and Kashmir108276095179 Kerala8323425732 Punjab81785586199 Chhatisgarh4265320219 Jharkhand3963235131 Uttarakhand3608285647 Goa2583154014 Tripura209314752 Manipur16269700 Puducherry146878518 Himachal Pradesh124392710 Nagaland8453400 Chandigarh5884238 Arunachal Pradesh3871452 Meghalaya316462 Mizoram2331510 Sikkim166870
  Business   Companies  24 Jul 2017  India's largest telecom player: Vodafone-Idea merger gets CCI nod

India's largest telecom player: Vodafone-Idea merger gets CCI nod

PTI
Published : Jul 24, 2017, 8:26 pm IST
Updated : Jul 24, 2017, 8:27 pm IST

Post the merger, Vodafone will own 45.1 per cent stake while the Aditya Birla group will have 26 per cent shareholding.

The Competition Commission on Monday approved the merger of Vodafone India and Idea Cellular.
 The Competition Commission on Monday approved the merger of Vodafone India and Idea Cellular.

New Delhi:  The Competition Commission on Monday approved the merger of Vodafone India and Idea Cellular, said lawyers who worked on the deal, which will create the country's largest telecom operator.

Shardul Amarchand Mangaldas and Co said the regulator has "unconditionally" approved merger of the telecommunications businesses of Vodafone India and its wholly-owned subsidiary Vodafone Mobile Services, with Idea Cellular.

"The USD 23 billion transaction is the largest transaction by value in the history of Indian M&A," it said in a statement.

Shardul Amarchand Mangaldas and Co advised Vodafone India and Vodafone Mobile Services on the deal.

According to the statement, the regulator carried out a comprehensive review of the transaction and concluded that there was no appreciable adverse effect on competition from the proposed merger.

"The CCI approval, within Phase 1, is a very welcome development for both the Indian M&A landscape and the telecom sector, and will serve to fuel more investment in capacity and coverage across a battling telecom sector in India," Shweta Shroff Chopra, Partner at Shardul Amarchand Mangaldas, said.

Phase 1 refers to the deal being approved within 30 working days as provided by the Competition Act. Law firm Trilegal, which advised Idea Cellular on the competition law aspects, said the deal with Vodafone India has received CCI approval.

"The proposed merger involved a merger of two of the biggest telecom companies in India and will create the largest telecom player in India, creating significant efficiencies and synergies," Trilegal said in a separate statement.

Getting approval within Phase I implies that the deal would not be subject to detailed scrutiny. Transactions where there are prima facie concerns that they would adversely impact competition are taken into Phase II for an in-depth scrutiny.

Mergers and acquisitions beyond a certain threshold require approval of the Competition Commission of India (CCI), which keeps a tab on unfair business practices across sectors.

The deal, announced in March this year, will create the country's largest mobile phone operator worth more than USD 23 billion with a 35 per cent market share.

Post the transaction, Vodafone will own 45.1 per cent stake in the merged entity while the Aditya Birla group, Idea's parent, will have 26 per cent shareholding after paying Rs 3,874 crore cash for a 4.9 per cent stake. The remaining 28.9 per cent will be held by other shareholders.

Tags: idea vodafone merger, vodafone india, idea cellular, competition commission of india
Location: India, Maharashtra, Mumbai (Bombay)