New Delhi: Idea cellular and Vodafone, on Monday, announced their merger to become the largest telecom company. In the much-anticipated deal, Vodafone will hold 45 per cent stakes while Idea will hold 26 per cent share.
Vodafone, the second largest telecom operator in India and Idea cellular will have the widest network in the country and pan-India 3G/4G footprint, the companies together stated.
The chief executive of Vodafone Group Plc. Vittorio Colao said, “The combination of Vodafone India and Idea will create a new champion of Digital India founded with a long-term commitment and vision to bring world-class 4G networks to villages, towns and cities across India.”
He further added, “The combined company will have the scale required to ensure sustainable consumer choice in a competitive market and to expand new technologies – such as mobile money services – that have the potential to transform daily life of every Indian.”
Key Points of the merger:
- It is said that around 25,000 thousands jobs will be lost due to the merger.
- The companies are supposed to have synergy benefits of Rs 67,000 in the future.
- Idea cellular will have the right to appoint the Chairman of the merger entity while the Chief Financial Officer will be appointed by the the Indian unit of British telecom company, Vodafone.
- The Chief Executive Officer and Chief Operating Officer will be appointed by the approval of both the companies.
- The entity will hold around 40 crore customers or one of every three customers in the nation.