Vodafone confirms it is in merger talks with rival Idea Cellular in India
Vodafone said any merger would involve Idea issuing new shares to Vodafone
Vodafone, the second largest mobile operator in Indian market, on Monday said the company is in talks to merge its Indian operations with rival Idea Cellular, Reuters reported.
Vodafone says in Indian merger talks with Idea Cellular https://t.co/UWg2xQvhlI
— Reuters Business (@ReutersBiz) January 30, 2017
Confirming the growing media speculation over the merger talks, the company said it is in talks with Idea's parent firm Aditya Birla and the discussion is on an all-share deal that could help the groups counter the fierce competition in the market.
According to the statement, any merger would involve Idea, the third-largest telecom operator in India, issuing new shares to Vodafone and that deal would also see Vodafone deconsolidating Vodafone India. Reports said Vodafone's stock jumped 3 percent after the company announced the details of merger talks.
The major mobile operators in the country- Bharti Airtel, Vodafone and Idea- recently slashed prepaid tariffs and introduced cheaper data plans in order to compete with Reliance Jio.