Vodafone India and Idea Cellular have completed a merger to form Vodafone Idea, the largest mobile provider in India with over 408 million subscribers, The Times of India has said
According to Financial Times, the agreement was made in March 2017 but has only now secured regulatory approval.
The combined market share of the two companies sits at 32.2%, while the two brands will continue to operate.
Through this merger, Vodafone Idea has overtaken Bharti Airtel as the biggest telecommunications provider in India and carries the weight to compete fiercely in the market.
Reliance Jio is a significant opponent to Vodafone Idea’s market share, having introduced an aggressive pricing strategy which dented industry earnings and instigated a price war between firms.
Financial Times stated that the merger would create an annual saving of €1.7bn, but would nonetheless form a combined debt of €13.2bn.
The newly-merged company released a statement saying: “The merger is expected to generate Rs 14,000 crore annual synergy, including opex synergies of Rs 8,400 crore, equivalent to a net present value of approximately Rs 70,000 crore”.
Chairman of Aditya Birla Group and Vodafone Idea Limited, Kumar Mangalam Birla, said, “Today, we have created India’s leading telecom operator”.
“It is truly a historic moment. As Vodafone Idea, we are partnering in this initiative by building a formidable company of international repute, scale, and standards”.