Advertise with

Vodafone in Indian merger talks
Vodafone in Indian merger talks

Vodafone in Indian merger talks

SERVICES NEWS - Feb 1st 2017, 11:44

Mumbai/London — Vodafone Group is in discussions to merge its Indian unit with Idea Cellular in a deal that would create the country’s biggest cellular carrier and ease a worsening headache for CEO Vittorio Colao. 

The talks with Idea controlling holder Aditya Birla Group could lead to Vodafone splitting off its Indian business into a separate entity, Vodafone said on Monday, Aditya Birla and Vodafone would have equal rights in the new company, Idea said.

Idea rose as much as 29%, the most since the shares began trading in 2007, bringing the company’s market value to more than $5bn. Vodafone shares gained as much as 4.1%.

The all-stock deal would reduce Vodafone’s exposure to its troubled Indian business after the carrier was forced to pump more than $7bn into the unit and write down its value by more than $5bn.

Carriers in India are seeking to consolidate after Reliance Jio Infocomm, controlled by billionaire Mukesh Ambani, India’s richest man, introduced free services undermining revenue.

"India needs consolidation — there’s just way too many operators there and that’s prevented any of them from ever making the kinds of money that they’d hoped for," said Allan Nichols, an analyst at Morningstar in Amsterdam.

A deal was not certain, nor were the terms or timing of any transaction, Newbury, UK-based Vodafone said.

Vodafone’s Indian unit is the second-largest carrier in India and Idea the third. A merger would create an operator with 387-million subscribers, a 36% market share and airwaves for faster 4G services.© BusinessLIVE MMXVII 

Read more about: vodafone group | vodafone | services

Related News

Customer engagement through gamification
17/08/2018 - 13:55
Gamification provides insurers with an ideal platform to enhance customer engagement. With apps like MEGA MEDS, that turns medicine management into a fun experience, and the likes of the Discovery Insure Driving Challenge, that rewards customers who are good drivers, there is significant potential for insurers and others to take a different approach to dealing with stakeholders.

Trade and business services lost the most jobs in the first quarter
27/06/2017 - 14:43
Employment levels fell in the first quarter of 2017, though mining and construction both showed increased.

Vodacom’s revenue and profit rise despite rate cuts
15/05/2017 - 09:11
Mobile phone network Vodacom managed to grow revenue and profit slightly in the year to end-March despite cutting rates.

Vodacom appoints MobiMedia as Strategic Sales Channel Partner
12/04/2017 - 10:49
MobiMedia, the mobile marketing arm of Ole! Media Group, has been appointed one of only three carefully selected Strategic Sales Channel Partners (SCPs) to handle Vodacom’s extensive mobile inventory.

DHL Express lauches ‘Growing Beyond Borders’ entrepreneurial training program in South Africa
16/03/2017 - 10:39
DHL Express, the world’s leading international express services provider, recently launched its ‘Growing Beyond Borders’ entrepreneurial training program in Sub-Saharan Africa (SSA) – an innovative program specifically designed to help small and medium enterprises (SMEs) understand the economic potential of international trade and the subsequent benefits to their businesses.