Vodafone confirms it is in merger talks with Idea Cellular

Ending months of speculation, Vodafone on Monday confirmed it is in talks with the Aditya Vikram Birla group for the merger of its Indian entity and Idea Cellular in what will be the largest such deal in the country’s telecom space once it materializes.

India's three leading mobile operators, Bharti Airtel, Vodafone and Idea, have all been hammered by the arrival of Jio Infocomm, a new operator owned by the billionaire Mukesh Ambani which has shaken up the market by offering free voice and data to customers.

“Vodafone confirms that it is in discussions with the Aditya Birla Group about an all share merger of Vodafone India — excluding Vodafone’s 42 percent stake in Indus Towers — and Idea,” the Indian entity’s parent company said in a statement. ”Any merger would be effected through the issue of new shares in Idea to Vodafone and would result in Vodafone deconsolidating Vodafone India.”

READ : Vodafone To Invest Over Rs 500 Crore In Gujarat To Expand 4G Services

Vodafone's stock jumped 3 percent after it said a deal would enable it to deconsolidate the asset, or take it off its books, and receive a dividend from the combined group.

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