VODAFONEIDEA MERGER GETS CCI APPROVAL

MUMBAI: The mega merger between Aditya Birla Group firm Idea Cellular Ltd and Vodafone India Ltd on Monday crossed a major hurdle, with antitrust regulator Competition Commission of India (CCI) approving the proposal, two people aware of the development said.

In March, the boards of Idea and Vodafone India approved a $23 billion merger of the two companies, excluding the latter’s 42% stake in Indus Towers Ltd. The merger is expected to create India’s largest telecom company.

“CCI today has notified both the companies of its go-ahead to the merger. This is the first major regulatory hurdle that the merger deal has crossed. There are more regulatory clearances the deal needs, which will be worked upon in coming months,” said one of the two people cited above, requesting anonymity as he is not authorised to speak to reporters.

The merger is expected to be completed in 2018.

Spokespersons for Vodafone India and Idea could not be immediately reached for comment. The merger will create the world’s second largest and India’s largest telco, overtaking Bharti Airtel Ltd, Mint reported in March.

It will have almost 400 million customers with 35% customer and 41% revenue market share.

It will have a revenue of ₹81,600 crore and an operating profit of ₹24,400 crore.

Together, Idea Cellular and Vodafone India have a debt of ₹1.08 lakh crore. The merger will help the two firms put up a stronger fight against latest entrant Reliance Jio.